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Archived News Release — Caution: Information may be out of date.
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Release Date: 01/14/2004
Release Number: 04-36-NEW
Contact Name: Rita Ford
Phone Number: 202.693.8671
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New York, New York - The U.S. Department of
Labor sued to remove the plan trustee and appoint an independent fiduciary
for the Oven Digital, Inc. 401(k) plan of New York, New York after the
plan was abandoned by the plan’s fiduciary. The independent fiduciary
will be responsible for distributing plan assets to participants and
terminating the plan. |
“The
department took legal action to ensure that the participants receive the
benefits the company promised them,” said Francis Clisham, director of
the New York regional office of the department’s Employee Benefits
Security Administration, which investigated the case. |
Plans
become “orphan plans” when they are abandoned by all fiduciaries
designated to manage and operate them and their assets. |
The
lawsuit alleges that Henry Bar-Lehav, the plan trustee and president of
Oven Digital, Inc., violated the Employee Retirement Income Security Act
by abandoning the plan in 2001 after the company ceased doing business and
failing to distribute its assets. The suit also alleges that Bar-Lehav
failed to take the necessary actions to distribute plan assets and
terminate the plan. As a result, participants did not have a way to
transact business and communicate with the plan. The suit was filed in
federal district court in New York City. |
Oven
Digital, Inc. specialized in designing Web sites. The company’s 401(k)
plan had 64 participants and $360,003 in assets as of December 31, 2002. |
Employers
and workers can contact the New York regional office at 212.607.8600 or
EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with problems
relating to private-sector retirement and health plans. |
(Chao
v. Oven Digital, Inc. 401(k) Plan)
Civil Action No. 04-00195 |
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U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7755. |
Archived News Release — Caution: Information may be out of date.
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