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Release Date: September 23, 2008
Release Number: 08-956-CHI
Contact Name: Brad Mitchell or Scott Allen
Phone Number: 312.353.6976
Middleburg Heights, Ohio – The U.S.
Department of Labor has sued First Primary Mortgage Inc. of Middleburg
Heights, and its owner and the trustee of the First Primary Mortgage
Inc. 401(k) Plan, for failure to properly administer the company plan in
violation of the Employee Retirement Income Security Act (ERISA).
The lawsuit, filed in federal district court in
Cleveland, Ohio, alleges that the defendants have failed to take
fiduciary responsibility for the operation and administration of the
plan since January 2007. As relief, the suit asks the court to remove
the company from its position as a fiduciary and permanently bar Sammy
D. Quick, who served as the plan’s trustee, from acting as a fiduciary
to any ERISA-covered employee benefit plan. Finally, the suit asks the
court to appoint an independent fiduciary to terminate the plan and
distribute its assets to eligible participants and beneficiaries.
“The Labor Department is committed to protecting
workers’ benefits when plan assets are either misused or the plans are
abandoned,” said Paul Baumann, acting director of the department’s
Employee Benefits Security Administration (EBSA) Cincinnati Regional
Office.
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 866.444.3272 for help with
problems relating to private sector retirement 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.
Chao v. Quick
Civil Action Number 1:08-cv-02245
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