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Newark, Delaware - The U.S. Department of Labor
has obtained a court order requiring Foley Brofsky Inc. (FB), Foley
Jewelers Christiana Inc. (FJC) and FJC’s president David A. Mazer to
restore $52,214 to the companies’ 401(k) plan. Mazer must pay an
additional $6,783 as restitution for lost income caused by violating the
Employee Retirement Income Security Act (ERISA).
Mabel Capolongo, regional administrator of the
department’s Employee Benefits Security Administration (EBSA) said, “We
filed this case to ensure that the plan participants recoup the money they
set aside for their retirement years.”
In a suit filed February 8, 2005, the department
alleged that Mazer and the two companies violated ERISA by failing to
ensure that employee contributions were remitted to the 401(k) plan, and
remitted in a timely manner.
Besides making restitution, the order removes Mazer,
FJC and FB as fiduciaries of the plan and permanently prohibits them from
serving as trustees, fiduciaries, advisors or administrators to any ERISA-covered
employee benefit plan.
David Lipkin has been appointed as independent
fiduciary of the plan with authority to distribute benefits to
participants and beneficiaries. As of December 31, 2003, the plan had 19
participants and $561,469 in assets.
The case was investigated by EBSA’s Philadelphia
regional office. In fiscal year 2004, EBSA achieved record monetary
results of $3.1 billion related to the pension, 401(k), health and other
benefits of millions of American workers and their families. Employers and
workers can reach EBSA’s Philadelphia regional office at 215.861.5300.
Help with problems relating to private sector retirement and health plans
can also be obtained through EBSA’s toll-free number 1.866.444.EBSA
(3272).
(Chao v. Mazer, et al)
Civil Action Number: 2:05-cv-00611 |
