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Release Date: June 12, 2008
Release Number: 08-804-BOS/BOS 2008-172
Contact Name: John M. Chavez
Phone Number: 617.565.2075
Boston – Trustees of defunct VikinGlobal
Corp. of Warren, Rhode Island, have agreed to administer the company’s
abandoned 401(k) plan to resolve a lawsuit filed by the U.S. Department
of Labor alleging violations of the Employee Retirement Income Security
Act (ERISA).
The suit, filed October 2007 in the U.S. District
Court for the District of Rhode Island, alleged trustees Robert Anderson
and Mark Schmidt violated their fiduciary duties under ERISA during the
period from October 1, 2002, to the present by failing to take
responsibility for the operation and administration of the plan and its
assets. Anderson and Schmidt were co-owners of VikinGlobal, the plan’s
sponsor until it ceased operations in early 2002. Since then,
participants and beneficiaries have been unable to gain access to or
obtain information about their individual accounts.
Plans become “orphan plans” when they are
abandoned by all fiduciaries designated to manage and administer them.
The plan had 13 participants and approximately $12,000 in assets being
held by custodian BlackRock Funds.
“The department took this legal action to ensure
that the participants receive their promised benefits,” said James
Benages, director of the Boston Regional Office of the department’s
Employee Benefits Security Administration (EBSA).
The consent judgment obtained by the department bars
the defendants from serving in a fiduciary capacity to any ERISA-covered
plan other than the VikinGlobal 401(k) Plan for a period of eight years
and requires them to distribute the remaining plan assets to the
participants and beneficiaries.
This legal action resulted from an investigation
conducted by EBSA’s Boston Regional Office. Employers and workers can
contact the Boston office at 617.565.9600 or toll-free at 866.444.3272
for help with any problems relating to private sector pension and health
plans. In fiscal year 2007, EBSA achieved monetary results of $1.5
billion related to pension, 401(k), health and other benefits for
millions of American workers and their families. Additional information
can be found at www.dol.gov/ebsa.
Chao v. VikinGlobal Corp.
Civil Action Number: 1:07-CV-00364-S-DLM
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 upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7828 or TTY 202.693.7755. The U.S.
Department of Labor 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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