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Release Date: July 9, 2008
Release Number: 08-480-PHI
Contact Name: Alisha Brown
Phone Number: 215.861.5101
Ligonier, Pennsylvania – William R. McAnulty,
trustee of the E.R. Caldwell Land Clearing Contractors Inc.’s 401(k)
Profit Sharing Plan in Ligonier has agreed to restore $117,477 to the
plan to resolve a lawsuit filed by the U.S. Department of Labor.
The suit was filed in the U.S. District Court for the
Western District of Pennsylvania following an investigation by the
department’s Employee Benefits Security Administration (EBSA) that
disclosed multiple violations of the Employment Retirement Income
Security Act (ERISA). From December 2002 to February 2003, McAnulty and
the company violated ERISA when assets were transferred from the plan’s
investment account to corporate accounts.
“Plan fiduciaries have a responsibility to ensure
that the assets of the plan are used solely to benefit participants,”
said Mabel Capolongo, director of EBSA’s Philadelphia Regional Office.
“Theft of employee benefits assets jeopardizes the benefits of workers
and will not be tolerated.”
A consent judgment entered by the court orders the
payment of $117,477 as restitution to the plan. The defendant will make
installment payments over the next five years. If the defendant misses a
payment, the entire balance will become due and payable immediately to
satisfy the order. In addition to restoring plan funds, the judgments
remove McAnulty and the company as the fiduciaries for the plan, prevent
McAnulty and the company from ever being fiduciaries or trustees in the
future, and appoints Metro Benefits Inc. as an independent fiduciary
with authority over plan administration and disposition of plan assets.
In a separate criminal case, McAnulty pled guilty to
theft from an employee benefit plan in December 2007. On May 2, 2008, he
was sentenced to two years of probation on his conviction and ordered to
restore $29,660 in restitution to the plan.
Employers and workers needing help with problems
related to private sector retirement and health plans can reach the
regional office at 215.861.5300 or they may call EBSA’s toll-free at
866.444.3272.
In fiscal year 2007, EBSA achieved monetary results
of $1.5 billion related to pension, 401(k), health plans and other
benefits for millions of American workers and their families.
Information on EBSA is available from the agency’s Web site at
www.dol.gov/ebsa.
Chao v. William R. McAnulty
Civil Action Number: 06-01306
U.S. Department of Labor news releases are accessible on the
Department's Newsroom
page. The information in this news release will be made available
in alternate format (large print, Braille, audio tape or
disc) from the COAST office upon request. Please specify which news release when
placing your request at 202.693.7828 or TTY 202.693.7755. The Labor Department is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit the
Department's Compliance
Assistance page.
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