Judgment removes president of defunct Cherry Hill manufacturer as 401(k) plan fiduciary, appoints independent fiduciary to distribute $47K in assets

Date of action:           Feb. 7, 2024

Type of action:          Motion for default judgment granted  by the U.S. District Court for the District of New Jersey. The action follows a complaint and motion filed by the U.S. Department of Labor on June 15, 2023.

Defendants:               Marlton Pike Precision LLC 401(k) and profit-sharing plan

                                          Antonio L. Sala                      

Background: An investigation by the department’s Employee Benefits Security Administration determined that on Jan. 1, 2005, Marlton Pike Precision LLC sponsored the company’s 401(k) as an employee pension benefit plan. Sala was the company’s president and plan trustee. 

EBSA found that the industrial manufacturer ceased business operations in 2017. At that time, all employees terminated their employment with the company and were entitled to benefit distributions from the plan. Following the company’s liquidation, Sala failed to take steps to ensure the continued administration and/or proper termination of the plan, including the distribution of plan assets to all affected participants and beneficiaries. These actions violated the Employee Retirement Income Security Act of 1974.

Relief: The default judgment ordered Sala removed from his position as fiduciary and trustee of the plan. It also appointed David Lipkin as the independent fiduciary with plenary authority to administer the plan and distribute $47,891 in plan assets to three participants. The judgment additionally ordered that all expenses associated with the appointment of the independent fiduciary and subsequent administration and termination of the plan be charged to Sala’s account within the plan.

Quotes: “We took this legal action to ensure that the plan is properly administered and the assets distributed to participants so they can finally gain access to their hard-earned retirement contributions,” said Regional Solicitor of Labor Jeffrey Rogoff in New York. 

“When fiduciaries fail to act in the best interests of plan participants, the U.S. Labor Department will vigorously enforce federal laws that protect the rights of employees to their retirement funds,” said EBSA Regional Director Cristina O’Brien in Philadelphia. 

Su v. Marlton Pike Precision LLC 401(k) and profit-sharing plan and Antonio L. Sala

Case No: 1:23-cv-02972-RMB-SAK