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Release Date: September 30, 2008
Release Number: 08-1363-BOS/BOS 2008-272
Contact Name: John M. Chavez
Phone Number: 617.565.2075
Portland, Maine – The U.S. Department of Labor has
filed a lawsuit in the U.S. District Court for the District of Maine
seeking appointment of an independent fiduciary to oversee the abandoned
401(k) plan of TRITECH Information Strategies Inc., formerly of
Kennebunk, Maine.
The company sponsored the plan for the benefit of its employees
beginning on January 1, 2000, and ceased operations in 2002. The suit
alleges that in June 2004, John E. Schofield, president and owner of
TRITECH, was incarcerated in India on fraud charges. He and his wife,
Linda A. Schofield, were trustees of the plan. After ceasing TRITECH's
operations, the Schofields failed to take any steps to prudently
administer the plan, thereby abandoning it.
The Employee Retirement Income Security Act requires employee benefit
plans to be managed by named fiduciaries. Without a fiduciary, plan
participants and beneficiaries cannot obtain plan information or access
accounts to make investments or collect retirement benefits.
Six of the plan's seven participants have received distributions of
their plan accounts, but one has not. Blackrock Funds of Pittsburgh,
Pennsylvania, is the custodian of the plan's assets. Following requests
by the Labor Department, Blackrock has declined to exercise its option
under the department's regulations to release the remaining assets to
the sole remaining plan participant. As a result, this last individual
cannot obtain his appropriate plan distribution without the intervention
of the federal court.
The Labor Department's suit asks the court to appoint an independent
fiduciary to administer the plan, distribute the remaining assets to the
remaining plan participant and oversee the plan's termination. The plan
currently has approximately $21,000 in assets being held by Blackrock
Funds.
"This suit demonstrates that the Labor Department will act to protect
the rights of even a single plan participant by initiating litigation
when necessary," said James Benages, regional director in Boston for the
Labor Department's Employee Benefits Security Administration (EBSA).
"We
hope the court will help ensure that this individual receives the
retirement benefits he is due."
The suit resulted from an investigation conducted by EBSA's regional
office in Boston. Employers and workers can contact that office at
617.565.9600 or toll free at 866.444.3272 for help with problems
relating to private sector pension 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. Additional information can be found at www.dol.gov/ebsa.
Chao v TRITECH Information Strategies Inc.
Civil Action Number: 2:08-CV-00321-DBH
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 (large print, Braille, audio tape or
disc) from the COAST office upon request. Please specify which news release when
placing your request at 202.693.7828 or TTY 202.693.7755. The Labor Department 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.
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