US Labor Department secures appointment of independent fiduciary for abandoned Albany, N.Y. 401(k) Plan

Date of Action: Jan. 28, 2014

Type of Action: Decision and Order

Name(s) of Defendant: Intelligent System Solutions 401(k) Plan

Allegations: Intelligent System Solutions, doing business as, Cipher Associates 401(k) plan, based in Albany, N.Y., is an employee defined contribution plan established in 1998. The Plan was sponsored by Intelligent System Solutions, Inc. doing business as Cipher Associates.

Jeffrey Bazinet, the plan’s trustee and only fiduciary, stopped performing his fiduciary duties on or about the year 2006. On April 20, 2011, he pled guilty to one felony count of theft of employee pension benefit funds. Due to his conviction, Bazinet is prohibited from serving as an administrator, fiduciary or officer of an ERISA-covered plan. As a result, 18 plan participants cannot access pension benefits totaling approximately $47,486.58.

On June 12, 2013, the Labor Department filed a complaint seeking the appointment of an independent fiduciary to administer the plan and distribute its assets to participants and beneficiaries.

Resolution: The court has ordered the appointment of M. Larry Lefoldt of Lefoldt & Co., P.A. as independent fiduciary for the plan with the authority to administer the plan, develop a plan for equitable adjudication and payment of outstanding participant claims for benefits and, if necessary, implement an orderly termination of the plan.

Court: U.S. District Court for the Northern District of New York

Docket Number: 1:13-cv-669 (FJS/CFH)

U.S. Department of Labor materials are accessible at www.dol.gov. The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling (202) 693-7828 or TTY (202) 693-7755.