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Release Date: 12/10/2004
Release Number: 04-2460-PHI
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Philadelphia, Pennsylvania - The former
president of defunct NLOCI Corporation in West Chester, Pennsylvania., was
sued by the U.S. Department of Labor for failure to forward employee
contributions to the company’s 401(k) plan. The department is seeking
over $17,000 in missing employee contributions plus interest. |
“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 future benefits owed to them.” |
The
lawsuit alleges that Frank T. Fiascki violated the Employee Retirement
Income Security Act (ERISA) by failing to forward to the Terminal
Technologies, Inc. 401(k) Plan contributions deducted from employees’
paychecks between June 2002 and March 2003. |
Both
the company and Fiascki filed for bankruptcy in 2003. The 401(k) plan
covered eight participants and had no assets as of October 15, 2003. Mr.
Fiascki’s bankruptcy was dismissed December 7, 2004. |
The suit seeks a court order to require that the
Fiascki restore all losses, including lost opportunity costs, waive his
right to benefits from the plan, and be removed from his position with the
401(k). The department also asks that he be permanently barred from
serving as a fiduciary capacity to any plan in the future. |
The
suit, filed in the federal district court in Philadelphia, resulted from
an investigation conducted by EBSA’s Philadelphia regional office.
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 any applicable excise taxes. For more information about the VFCP, see
www.dol.gov/ebsa. |
In
fiscal year 2004, EBSA achieved record monetary results totaling $3.1
billion for retirement, 401(k), health and other programs. Employers and
workers can reach the regional office at 215.861.5300 or through 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. Fiascki)
Civil Action No. 04-CV-5699
Bankruptcy Case No. 03-38671 |
U.S.
Labor Department news releases are accessible on the Internet at
www.dol.gov. 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
www.dol.gov/compliance. |