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Release Date: December 4, 2007
Release Number: 07-1852-PHI (OSHA 07-206)
Contact Name: Leni Fortson
Phone Number: 215.861.5102
Delmont, Pennsylvania – Michael Rizzi,
trustee of the Lomik Construction Corp.’s 401(k) profit-sharing plan
in Delmont, has agreed to restore $20,000 to the plan to resolve a
lawsuit filed by the U.S. Department of Labor.
The Labor Department filed suit against Rizzi after
an investigation conducted by the department’s Employee Benefits
Security Administration (EBSA) found that he failed to remit employee
contributions to the plan, remitted contributions late without adding
interest and retained the contributions in the company’s general
assets from the time of the plan’s inception in 2002 until October
2004.
“Trustees of 401 (k) plans have certain
responsibilities to ensure that the assets of the plan are used solely
to benefit participants. One of the most important is putting money from
workers’ wages into their 401 (k) accounts on time,” says Mabel
Capolongo, administrator of EBSA’s Philadelphia Regional Office. “This
case underscores the Labor Department’s commitment to take whatever
action is necessary to protect plan participants.”
In addition to restoring plan funds, judgments filed
in the U.S. District Court for the Western District of Pennsylvania
remove Rizzi and Lomik Construction as fiduciaries for the plan, prevent
them from being fiduciaries or trustees in the future, and appoint an
independent fiduciary to oversee the plan.
Employers and workers can reach EBSA’s Philadelphia
office at 215.861.5300 or toll-free at 1.866.444.EBSA (3272) for help
with problems relating to private sector retirement and health plans.
Information is also available from the agency’s Web site at
www.dol.gov/ebsa. 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. Rizzi
Civil Action Number: 2:06-cv-711
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with its laws and regulations. For more information, please visit the
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