Lansdale, Pennsylvania - The U.S. Department of
Labor has obtained a court order requiring David Valaika and Phoenix
Technical Services Inc. to restore $56,988 to the defunct company’s
401(k) plan.
Mabel Capolongo, regional director of the department’s
Employee Benefits Security Administration (EBSA) said, “We filed this
case to ensure that the plan participants recoup the money they set aside
for their retirement years.”
In a suit filed April 22 in the U.S. District Court for
the Eastern District of Pennsylvania, the department alleged that Valaika
and Phoenix Technical Services violated the Employee Retirement Income
Security Act (ERISA) when they illegally liquidated a total of $44,627 in
plan assets and deposited them in a bank account in the company’s name.
In addition to repaying money to the plan, the order
removes Valaika and Phoenix Technical Services as fiduciaries and
permanently bars them from serving as trustees, fiduciaries, advisors or
administrators to any ERISA-covered employee benefit plan. The court also
authorized the appointment of an independent fiduciary to distribute plan
assets to participants and beneficiaries.
The case was investigated by EBSA’s Philadelphia
regional office. In fiscal year 2004, EBSA achieved record monetary
results of $3.1 billion related to the pension, 401(k), health and other
benefits of millions of American workers and their families. Employers and
workers can reach EBSA’s Philadelphia regional office at 215.861.5300.
Help with problems relating to private sector retirement and health plans
can also be obtained through EBSA’s toll-free number 1.866.444.EBSA
(3272).
(Chao v. Valaika)
Civil Action Number: 2:05-CV-00611 |