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Release Date: January 31, 2006
Release Number: 06-143-NEW/BOS 2006-019
Contact Name: John M. Chavez
Phone Number: 617.565.2075
New York, New York - The U.S. Department of
Labor has filed suit in the U.S. District Court for the Southern
District of New York to appoint an independent fiduciary to administer
the abandoned 401(k) plan originally sponsored by WP Ford LLC of White
Plains, New York.
According to Jonathan Kay, regional director for the
Labor Department’s Employee Benefits Security Administration (EBSA) in
New York City, the company sponsored the WP Ford LLC, WP Cadillac LLC
& WP Daewoo LLC 401(k) plan for the benefit of its employees. The
company operated under the names Key Ford and Key Auto Used Car
Superstore. At some point in the recent past, the company ceased
operations without appointment of a fiduciary to oversee distribution of
plan assets to the participants, a violation of the Employee Retirement
Income Security Act (ERISA).
The department’s lawsuit seeks appointment of an
independent fiduciary to administer the plan, distribute its assets to
plan participants and beneficiaries and oversee the plan’s
termination. As of June 30, 2004, the plan had 14 participants and
$182,804 in assets. The Guardian Insurance & Annuity Company Inc. is
the custodian of the funds.
Said Kay, “We are taking this legal action so that
the plan’s participants can gain access to the funds that rightly
belong to them.”
The department’s suit resulted from an
investigation by EBSA’s New York regional office. Employers and
workers can contact that office at 212.607.8600 or EBSA’s toll-free
number, 1.866.444.EBSA (3272), for help with any problems relating to
private-sector pension and health plans. For more information see
www.dol.gov/ebsa.
(Chao v WP Ford LLC, WP Cadillac LLC & WP Daewoo
LLC, 401(k) Plan)
Civil Action Number: 06-CV-0687
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Department's Compliance
Assistance page.
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