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Release Date: April 26, 2006
Release Number: 06-665-PHI (EBSA 06-046)
Contact Name: Leni Uddyback-Fortson
Phone Number: 215.861.5102
Philadelphia, Pennsylvania - The U.S.
Department of Labor has sued Lomik Construction Corporation, Delmont,
Pennsylvania, and its president, Michael Rizzi, for violations of the
Employee Retirement Income Security Act.
The lawsuit alleges that the company and Rizzi, as
trustee of the 401(k) profit sharing plan, failed to forward or timely
remit plan contributions deducted from employees’ paychecks from
January 2002 through October 2004. In a separate action filed in
bankruptcy court, the department alleges Rizzi’s debt is
non-dischargeable and must be paid, even though he filed October 6 for
protection under Chapter 11.
“This legal action should put employers and plan
sponsors on notice that we will not hesitate to resort to litigation to
enforce the law and ensure that workers receive the benefits to which
they are entitled,” said Mabel Capolongo, regional director of the
department’s Philadelphia office of the Employee Benefits Security
Administration (EBSA).
The suit seeks a court order to remove Rizzi and the
company as plan fiduciaries; require them to restore any losses to the
plan, including lost opportunity costs; and appoint an independent
fiduciary to terminate the plan. In addition, the department asks that
the defendants be permanently barred from serving as fiduciaries to any
plan in the future.
The suit resulted from an investigation conducted by
EBSA’s Philadelphia regional office. Employers and workers needing
help with problems related to private-sector retirement and health plans
can reach the Philadelphia regional office at 215.861.5300 or may call
EBSA’s toll-free number, 1.866.444.EBSA (3272).
In fiscal year 2005, EBSA achieved monetary results
of $1.7 billion related to pension, 401(k), health and other benefits
for millions of American workers and their families.
(Chao v.Michael Rizzi and Lomik Construction
Corporation)
Civil Action No.: 2:06-cv-00547-DWA
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