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News Release Release Date: March 28, 2007 U.S. Labor Department sues trustee of Southfield, Michigan, 401(k) and pension plans for mismanagement - More than $1 million at stake Southfield, Michigan - The U.S. Department of Labor filed two lawsuits against the trustee of the benefit plans of now-defunct Prime Care Services Inc. in Southfield for failing to administer and terminate the company’s 401(k) and pension plans so that $1,155,943 in assets can be distributed to participants. “Workers and their families counted on these benefit plans to help fund their retirement,” said U.S. Secretary of Labor Elaine L. Chao. “The department is seeking to have all the money in the benefit plans – over $1.1 million – disbursed to the participants and beneficiaries.” The suits allege that plan trustee Paterno Doreza, who was also the co-owner of Prime Care Services, failed to take responsibility for terminating the company’s plans and distributing the assets to participants and beneficiaries after the company ceased doing business. As of November 30, 2006, the Prime Care Services Inc. 401(k) Savings Plan and Trust had $570,294.42 in assets and 77 participants. The Prime Care Services Inc. Money Purchase Pension Plan held $585,648.75 in assets for 64 participants. Each suit seeks to appoint an independent fiduciary to manage the plan at issue, terminate it and distribute assets to eligible participants and beneficiaries. The suits, filed in federal district court in Detroit, Michigan, resulted from an investigation conducted by the Employee Benefits Security Administration’s (EBSA) Detroit District Office, which is part of its Cincinnati, Ohio, region. Employers and workers can reach the agency’s Cincinnati office at 859.578.4680 or toll-free at 1.866.444.EBSA (3272) for help with problems relating to private sector retirement and health plans. In fiscal year 2006, EBSA achieved monetary results of $1.4 billion related to pension, 401(k), health and other benefits for millions of American workers and their families. Chao v. Doreza 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. |
Archived News Release Caution: Information may be out of date.