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Release Date: March 20, 2006
Release Number: 06-503-PHI (EBSA 06-027)
Contact Name: Kate Dugan
Phone Number: 215.861.5101
Philadelphia, Pennsylvania - The U.S.
Department of Labor has sued now-defunct Orris Fuel Inc., Creighton,
Pennsylvania, and its controller, seeking restoration of funds to the
company’s 401(k) plan.
According to Mabel Capolongo, regional director for
the department’s Employee Benefits Security Administration (EBSA), the
suit was filed in U.S. District Court for the Western District of
Pennsylvania against Victoria Skinner whose company, Orris Fuel, filed
for bankruptcy in October 2005.
The lawsuit alleges that the defendants withheld
employee contributions but either failed to forward or timely remit them
to the 401(k) plan, a violation of the Employee Retirement Income
Security Act (ERISA), the federal law that protects private employee
pension and benefit plans.
“This legal action should put employers and plan
sponsors on notice that we will not hesitate to resort to litigation to
enforce the law and ensure that workers receive the benefits to which
they are entitled,” said Capolongo.
The department’s suit asks the court to order
Skinner and Orris Fuel to restore to the plan all losses, including
interest; name an independent fiduciary to administer the plan,
distribute its assets and terminate it; and permanently bar the
defendants from serving as fiduciaries to any employment benefit plan
covered by the law.
The Labor Department’s legal action resulted from
an investigation conducted by EBSA’s Philadelphia regional office. In
fiscal year 2005, EBSA achieved monetary results of $1.7 billion related
to pension, 401(k), health and other benefits for millions of American
workers and their families.
Employers and workers can contact EBSA through its
toll-free number, 1.866.444.EBSA (3272), for more information on the
requirements of ERISA. Additional information can be found at
www.dol.gov/ebsa.
(Chao vs. Skinner, Orris Fuel, Inc.)
Civil Action No. 06-0294
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.
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