US Labor Department secures appointment of independent fiduciary for abandoned Central Islip, New York, profit sharing plan

Date of Action: Feb. 26, 2015

Type of Action: Judgment and Order

Defendant: First Land Title Agency of New York Inc. Profit Sharing Plan

Allegations: The plan was established in January 2002, as a defined contribution plan for employees of the First Land Title Agency of New York Inc. in Central Islip, N.Y. The conviction of Andrew Knee, the plan’s trustee and only fiduciary, on a charge of grand larceny prohibits him from serving as an administrator, officer or fiduciary of any benefit plan covered under the Employee Retirement Income Security Act.

Knee stopped performing his fiduciary duties in 2011, when the company went out of business and no new fiduciary was appointed. Without a named fiduciary, the plan’s two participants cannot access approximately $127,120.42 in plan assets.

On June 11, 2014 the department asked the court to appoint an independent trustee and fiduciary to administer the plan and distribute its assets to its participants and beneficiaries.

Resolution: The court has appointed Northeast Retirement Services of Woburn, Massachusetts, as independent fiduciary with authority to administer the plan and, if necessary, implement its orderly termination.

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

Docket Number: 2:14-cv-03696-SJF-AKT

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