EBSA News Brief
U.S. Department of Labor
For Immediate Release: April 9, 2013
US Labor Department sues defunct Eynon, Pa., car warranty company to
protect workers’ retirement assets
Date of Action: April 4, 2013
Name(s) of Defendant(s): Charles Yaskulski, Eagle Warranty Corp., and Eagle Warranty Corp. profit sharing plan
Allegations: In 2003, Eagle Warranty Corp. established the Eagle Warranty Corp. profit sharing plan for its employees. An investigation conducted by the U.S. Department of Labor’s Employee Benefits Security Administration found that from January 2006 through May 2009, employee contributions were withheld by the company and deposited into the plan’s trust for periods ranging up to 178 days after they were deducted from the employees’ compensation. The investigation also found that from March 2009 to May 2009, the company did not deposit payroll deductions withheld from the employee’s compensation into the plan’s trust. In addition, the company ceased operations and filed for bankruptcy in 2009. The plan documents require that the plan be terminated and the assets be distributed to participants upon the liquidation or dissolution of the company. In total, the profit sharing plan was owed approximately $22,027.46 in unremitted contributions and lost opportunity costs. The plan had approximately 46 participants entitled to distributions of their benefit.
Resolution: A complaint was filed in federal court against plan trustee Charles Yaskulski, Eagle Warranty Corp., and Eagle Warranty Corp. profit sharing plan. The department is seeking the removal of Charles Yaskulski and Eagle Warranty Corp. as fiduciaries with respect to the plan, and the appointment of an independent fiduciary with full authority to manage the remaining plan assets, allocate any assets contributed to the plan, and distribute any recovery received to participants. The department is also seeking a permanent bar enjoining Charles Yaskulski and Eagle Warranty Corp. from acting in any fiduciary capacity in the future.
Court: United States District Court for the Middle District of Pennsylvania
Docket Number: 3:13-cv-00854-UN3
U.S. Department of Labor materials are accessible at www.dol.gov. The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling 202-693-7828 or TTY 202-693-7755.