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Release Date: 09/23/2003
Release Number: 389
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Cincinnati, Ohio - The U.S. Department of Labor
obtained a court order appointing McDonald Investments, Inc., as the
independent fiduciary to manage the Heritage Financial Network, Inc.,
401(k) plan of Westerville, Ohio, after the plan was left without a plan
fiduciary. |
“The
department ensures that worker pension benefits are protected. After the
investigation by the department’s Employee Benefits Security
Administration, legal action was needed to ensure the plan participants
receive the benefits promised by this company,” said Joseph Menez,
director of the department’s Cincinnati regional office of the Employee
Benefits Security Administration (EBSA), which investigated the case. |
The
judgment, entered on September 11, 2003, also removes the company and
trustee Dale Francis from their positions with the plan. McDonald
Investments, located in Birmingham, Michigan, will have authority to
terminate the plans and distribute the assets to eligible participants. |
The
department filed a lawsuit simultaneously with the judgment, alleging that
Heritage Financial had not appointed a successor trustee when Francis
abandoned the plan, with the result that participants and beneficiaries
have been unable to obtain distributions from their accounts. |
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Francis is the former president and sole owner of
Heritage Financial. An involuntary Chapter 7 bankruptcy petition was filed
against Heritage Financial on August 23, 2000, and the bankruptcy court in
Columbus, Ohio, approved it on November 3, 2000. The company has ceased
operations. As of April 9, 2003, the 401(k) plan had seven participants
and $37,931.84 in assets. |
Employers
and workers can contact the regional office at 859.578.4680 or EBSA’s
toll free number, 1.866.444. 3272, for help with problems relating to
private-sector pension and health plans. |
(Chao
v. Heritage Financial Network, Inc.)
Civil Action No. C2-03-791 |
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U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7755. |
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