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Release Date: May 7, 2008
Release Number: 08-473-BOS/BOS 2008-137
Contact Name: John M. Chavez
Phone Number: 617.565.2075
Boston – David M. Hirsch, owner and
president of Adventure World Inc. in Shirley, Massachusetts, has agreed
to restore $5,856 to the company’s 401(k) plan to settle a lawsuit
filed by the U.S. Department of Labor alleging he violated his duty as a
trustee under the Employee Retirement Income Security Act (ERISA).
The suit, filed in the U.S. District Court for the
District of Massachusetts, alleges that Hirsch failed to forward to the
plan employee contributions withheld from employees’ paychecks between
May 1 and December 31, 2003. In January 2004, both the company and
Hirsch filed for bankruptcy.
The Adventure World Inc. 401(k) Profit-Sharing Plan
provides retirement benefits for company employees. The Employee
Benefits Security Administration’s (EBSA) Boston Regional Office,
which investigated the case, enforces ERISA requirements to protect
private sector employee benefit plans.
James Benages, regional director of EBSA in Boston,
said, “This defendant failed to discharge his fiduciary duties to the
plan and its participants. The funds of employee benefit plans are to be
used for the sole benefit of plan participants and beneficiaries, and
not for the benefit of the company that sponsors the plan.”
A consent judgment obtained by the department orders
Hirsch to pay restitution to the plan and to distribute to participants
their shares of any restitution made to the plan. The restitution will
be made by offsetting the $5,856 from Hirsch’s own plan account. After
distributing all the assets remaining in the plan, Hirsch will be
permanently barred from serving as a fiduciary to any ERISA-covered plan
in the future.
Employers and workers can reach EBSA at 617.565.9600
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.
Additional information can be found at www.dol.gov/ebsa.
Chao v. Hirsch
Civil Action Number 1:08-CV-10247-RCL
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page. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
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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
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