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Release Date: December 7, 2006
Release Number: 06-1946-NEW/BOS 2006-344
Contact Name: John M. Chavez
Phone Number: 617.565.2075
New York - The U.S. Department of Labor has
obtained a court order requiring the attorney who represents a Long
Island profit sharing trust to provide testimony that will aid in an
investigation of the trust. The department’s Employee Benefits
Security Administration (EBSA) is investigating possible violations of
ERISA, the federal Employee Retirement Income Security Act.
The Labor Department petitioned the U.S. District
Court for the Eastern District of New York to compel attorney Scott M.
Zucker to comply with the department’s administrative subpoena as part
of its investigation of the Sol Spitz Co. Inc. Profit Sharing Trust. The
company, now inactive, was based in Massapequa Park, New York. As of
December 31, 2004, its profit sharing trust had assets of $2,184,872 and
22 participants.
The EBSA is looking into the fact that the trust has
paid Scott M. Zucker more than $1 million in legal fees.
“The law requires the assets of plans be used only
for the benefit of plan participants and beneficiaries,” said Jonathan
Kay, regional director in New York for the EBSA. “Our investigation
seeks to determine if there has been a misuse of plan assets in the case
of the Sol Spitz Co. Inc. Profit Sharing Trust. Mr. Zucker’s testimony
is crucial to our investigation.”
The current court action was filed by the regional
office in New York City of the U.S. Labor Department’s Solicitor of
Labor.
Kay noted that, in May of this year, Zucker was first
subpoenaed to testify in an administrative deposition in this matter.
After postponing his testimony several times, Zucker agreed to be
deposed on October 12, but failed to appear.
The court has now ordered Zucker to appear to testify
at a deposition on December 19, 2006, at the EBSA offices in New York
City.
In fiscal year 2005, EBSA achieved monetary results
of $1.7 billion related to the pension, 401(k), health and other
benefits for millions of American workers and their families. Employers
and workers can contact the New York regional office at 212.607.8600 or
EBSA’s toll free number at 1.866.444.EBSA (3272) for help with
problems relating to private-sector retirement and health plans.
(Chao v. Zucker)
Case No. 06-MC-546
U.S. Department of Labor news releases are accessible on the
Department's Newsroom
page. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7765 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
Assistance page.
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