Department secures consent judgment appointing independent fiduciary to distribute $966K in 401(k) assets of defunct Pennsylvania biopharma company

Date of Action: March 8, 2016

Name(s) of Defendants: Encorium Group Inc., formerly a global clinical research company

Allegations: On Sept. 29, 2015, the U.S. Department of Labor filed a complaint to remove Encorium Group Inc., as fiduciary of the company’s 401(k) plan after an investigation by the department’s Employee Benefits Security Administration. The agency found the company ceased all business operations on or about October 2009, but failed to take the appropriate steps to terminate the plan. Since then neither the company, nor any former officers of the company, have taken fiduciary responsibility for the plan’s operation and administration.

As of May 12, 2015, the plan had 33 remaining participants with individual account balances totaling $966,752.08. The plan’s assets are currently held by State Street Bank and Trust.

Resolution: On March 8, 2016, the court approved a consent judgment removing the company as plan fiduciary and appointing Saakvitne Law Corp., as the plan’s independent fiduciary. The judgment authorizes the Santa Monica, California-based Saakvitne to administer the plan, distribute plan assets to all affected participants and terminate the plan.

Court: U.S. District Court for the Eastern District of Pennsylvania

Docket Number: 15-5365-TJS