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Release Date: August 22, 2008
Release Number: 08-1161-PHI (ebsa 04-146)
Contact Name: Leni Fortson
Phone Number: 215.861.5102
West Chester Pennsylvania –
The U.S. Department of Labor has filed suit to have an
independent fiduciary appointed to oversee the 401(k) plan of Five Star
Industrial Services Inc., a defunct company located in West Chester,
Pennsylvania.
“We filed this case to ensure that the plan
participants are able to recoup the money they entrusted to the plan for
their retirement savings,” says Mabel Capolongo, regional
administrator of the department’s Employee Benefits Security
Administration (EBSA) in Philadelphia.
The company established the plan in 1985 and managed
it until 1995 when the company ceased operations. Since that time, Five
Star has not taken fiduciary responsibility for the operation and
administration of the plan and its assets, nor has it appointed anyone
to assume that responsibility. As a result, plan participants and
beneficiaries have not been able to access their individual account
balances.
The complaint, filed in the U.S. District Court for
the Eastern District of Pennsylvania, seeks to remove Five Star from its
position as plan fiduciary and appoint an independent fiduciary to
terminate the plan and distribute plan assets to participants and
beneficiaries.
As of February 20, 2008, the plan had nine
participants and approximately $16,076 in assets.
The suit resulted from an investigation conducted by
EBSA’s regional office in Philadelphia. Employers and workers can
contact the office at 215.861.5300 or toll-free at 866.444.3272 for help
with 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. Five Star Industrial Services Inc., et. al
Civil Action No: 08-cv-4073
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