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Release Date: October 6, 2006
Release Number: 06-1720-CHI
Contact Name: Brad Mitchell
Phone Number: 312.353.6976
Detroit, Michigan - The U.S. Department of
Labor has obtained a default judgment removing the former president of
now-defunct Application Technology Group Inc. (ATG), Oakland County,
Michigan, as a fiduciary to the ATG 401(k) plan, and permanently barring
Kenneth A. Poulos from serving as a plan fiduciary to any Employee
Retirement Income Security Act (ERISA)-covered employee benefit plan.
The judgment, entered in the federal district court
in Detroit, also names an independent fiduciary to administer and
disburse the assets of the plan to entitled participants and
beneficiaries.
“The department will act when plan fiduciaries fail
to carry out their duty to protect the retirement plan assets held on
behalf of participants,” said Joseph Menez, director of the department’s
Cincinnati regional office of the Employee Benefits Security
Administration (EBSA).
The default judgment resolves a complaint filed by
the U.S. Labor Department that alleged Poulos had not taken
responsibility for operation of the plan and its assets since approval
of a participant distribution November 7, 2004. Poulos had
responsibility for distributing accrued funds in the plan to persons
entitled to those funds.
Employers with similar problems, who are not yet the
subject of an investigation by EBSA, may be eligible to participate in
the department’s Voluntary Fiduciary Correction Program (VFCP).
Participation in the VFCP requires employers to make workers whole but
allows them to avoid EBSA enforcement actions and civil penalties as
well as applicable excise taxes. For more information about the VFCP see
www.dol.gov.ebsa.
The suit resulted from an investigation conducted by
the Cincinnati district office of EBSA. Employers and workers can reach
the Cincinnati regional office at 859.578.4680 or through EBSA’s
toll-free number, 1.866.444.EBSA (3272), for help with problems relating
to private-sector retirement and health plans. 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.
(Chao v. Poulos)
Civil Action No. 06-10124
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