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Release Date: June 16, 2006
Release Number: 06-969-PHI (EBSA 06-064)
Contact Name: Leni Uddyback-Fortson
Phone Number: 215.861.5102
Philadelphia, Pennsylvania - The U.S.
Department of Labor has filed an adversary complaint in federal
bankruptcy court against the owner of now defunct G&M Land
Development Inc., Wescosville, Pennsylvania, to prevent her from
discharging $118,736 owed to participants of the company’s pension
plan. G&M Land Development Inc. was a mobile home business that
ceased operations in 1999.
“This lawsuit demonstrates our commitment to hold
plan fiduciaries accountable when they abuse their position and do not
protect the assets entrusted to them,” said Mabel Capolongo, director
of the Employee Benefits Security Administration (EBSA) office in
Philadelphia that investigated the case.
Under a February 2, 2006 consent judgment entered in
the federal district court for the eastern district of Pennsylvania,
Cathy Milder, co-owner of G&M Land Development and trustee of the
pension plan, was required to restore the plan assets after a Labor
Department investigation found the company in violation of the Employee
Retirement Income Security Act (ERISA). Milder subsequently filed for
personal bankruptcy.
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.
Employers can contact the Philadelphia regional
office at 215.861.5300 or EBSA’s toll-free number at 1.866.444.EBSA
(3272), for help with problems pertaining to private-sector retirement
and health plans.
(U. S. v. Milder)
Civil Action No. (06-02204-ref)
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