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Release Date: February 13, 2008
Release Number: 07-1912-CHI
Contact Name: Brad Mitchell/Scott Allen
Phone Number: 312.353.4807/312.353.6976
Bedford, Ohio – The U.S. Department of Labor
has filed suit in federal district court in Cleveland, asking the court
to appoint an independent fiduciary to terminate the Preferred Mortgage
Group 401(k) plan so that assets can be distributed to plan
participants.
“The department will act when plan fiduciaries fail
to carry out their duty to protect the retirement plan assets held on
behalf of participants,” said Joseph Menez, director of the department’s
Cincinnati Regional Office of the Employee Benefits Security
Administration (EBSA).
The lawsuit alleges that the plan’s administrator
failed to take responsibility for terminating the plan and distributing
its assets to beneficiaries and participants when the company ceased
doing business. The Labor Department also alleges that Preferred
Mortgage Group failed to obtain a fidelity bond as required by law.
The suit seeks to appoint an independent fiduciary to
manage the plan, terminate it and distribute assets to eligible
participants and beneficiaries. The plan has 24 remaining participants
with assets totaling $13,745.37.
The suit resulted from an investigation conducted by
EBSA’s Cincinnati Regional Office. Employers and workers can reach the
office at 859.578.4680 or toll-free at 1.866.444.EBSA (3272) for help
with problems relating to private sector retirement and health plans. In
fiscal year 2006, EBSA achieved monetary results of $1.4 billion related
to pension, 401(k), health and other benefits for millions of American
workers and their families.
Chao v. Preferred Mortgage Group Inc.
Civil Action Number 08-cv-00352
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