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Employee Benefits Security Administration

News Release

EBSA News Release: November 16, 2010
Contact Name: Leni Fortson
Phone Number: 215-861-5102
Release Number: 10-1446-PHI

U.S. Labor Department sues Somerset, Pa., companies and executive to protect 401(k) profit-sharing plan participants

SOMERSET, Pa. - The U.S. Department of Labor has sued Super City Sports Sales Inc., general manager James V. Sujansky and parent company Pioneer Inc. for failing to remit employee contributions to the company's 401(k) profit-sharing plan, and for withdrawing all remaining plan funds in violation of the Employee Retirement Income Security Act.

The lawsuit alleges that the defendants failed to remit employee contributions to the plan and remitted certain employee contributions to the plan late without interest. The suit also alleges that Sujansky withdrew the remaining assets from the plan's account and deposited the money into the company's account. The alleged violations occurred from July 2002 through September 2006.

"Plan fiduciaries have a legal obligation to protect the interests of plan participants. The department will hold plan fiduciaries accountable when they fall short of their obligations under the law," said Mabel Capolongo, regional director of the department's Employee Benefits Security Administration in Philadelphia, Pa.

Filed in the U.S. District Court for the Western District of Pennsylvania, the suit seeks to restore to the plan all losses and lost opportunity costs, and to permanently bar Pioneer Inc., Super City Sports Sales Inc. and Sujansky from serving in a fiduciary capacity to any employee benefit plan covered by ERISA.

Super City Sports Sales sells and services trailers, motorcycles and snowmobiles in Somerset.

This case is part of EBSA's employee contribution project to safeguard workers' contributions to 401(k) and health benefit plans. Employers and workers can reach EBSA's Philadelphia Regional Office at 215.861.5300 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans. Additional information can be found at http://www.dol.gov/ebsa.

Solis v. Sujansky

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