Printer
Friendly Version
Release Date: February 7, 2006
Release Number: 06-106-PHI (EBSA 06-004)
Contact Name: Leni Uddyback-Fortson
Phone Number: 215.861.5102
Philadelphia, Pennsylvania - The U.S. Labor
Department sued Expert Dry Wall Company Inc. and its president Valerie
Kelly for transferring plan assets to Kelly and her sister from the
company’s 401(k) savings plan and other violations. The company ceased
operations October 2001.
“The Department of Labor will aggressively enforce
the law to protect the retirement funds of this nation’s hardworking
men and women,” said Mabel Capolongo, director of the Philadelphia
regional office of the Employee Benefits Security Administration (EBSA).
“Our legal action will ensure that these workers receive the benefits
due them.”
The lawsuit alleges that Kelly violated her duties as
sole trustee to the plan under the Employee Retirement Income Security
Act. In addition to the unauthorized transfers, she allegedly failed to
forward employee contributions in a timely fashion and to pay interest
on the delinquent contributions owed to the plan between January 2000
and May 2001. The suit also alleges Kelly failed to distribute to each
plan participant their respective balance when the plan was terminated
in November 2002.
The suit seeks a court order requiring the defendants
to restore all losses, including lost opportunity costs, removing them
as plan fiduciaries and appointing an independent fiduciary to manage
the plan. The department also asks that the defendants be permanently
barred from serving as fiduciaries to any plan in the future.
The suit, filed in the Federal District Court for the
Western District of Pennsylvania, resulted from an investigation
conducted by EBSA’s Philadelphia regional office.
(Chao v. Kelly)
Civil Action No.: 2:06-cv-156
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.
|