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Release Date: July 22, 2008
Release Number: 08-1016-SAN (SF-78)
Contact Name: Roger Gayman
Phone Number: 415.625.2631
San Francisco – The U.S. Department of Labor
has sued North Valley Precision Products of Reno, Nevada, for misusing
401(k) plan assets that resulted in 12 former employees being unable to
access their retirement plan accounts.
The suit, filed in the U.S. District Court for the
District of Nevada, alleges that the company violated the Employee
Retirement Income Security Act (ERISA) when $26,506 in plan assets were
transferred to a corporate account and used for non-plan expenses. The
company also failed to appoint a successor to administer the plan after
it ceased doing business in 2006.
The suit seeks to restore any losses to the plan that
resulted from the misuse of the plan assets. The suit also seeks to
remove the company as a fiduciary and appoint an independent fiduciary
to administer the plan. The independent fiduciary will be responsible
for terminating the plan and distributing the assets to eligible
employees and beneficiaries.
“This case demonstrates the department’s
commitment to taking action to protect the benefits promised to workers,”
said Billy Beaver, regional director of the Labor Department’s
Employee Benefits Security Administration (EBSA) office in San
Francisco. “Plan participants have been unable to access their funds
– money they’ve counted on for their retirement. We hope that,
through this action, these workers and their families will have access
to their retirement savings.”
North Valley Precision Products manufactured sheet
metal boxes used for gaming machines and medical devices.
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.
Employers and workers can reach EBSA’s San
Francisco Regional Office at 415.625.2481 or through the agency’s
toll-free number, 866.444.3272, for help with problems relating to
private sector retirement and health plans. Information on EBSA is also
available from the agency’s Web site at www.dol.gov/ebsa.
Chao v. North Valley Precision Products LLC
Civil Action Number: CV-00396-LRH-VPC
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placing your request at 202.693.7828 or TTY 202.693.7755. The Labor Department is committed to providing America's employers and
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Department's Compliance
Assistance page.
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