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Release Date: 11/20/2003
Release Number: 03-778-PHI (EBSA 177)
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
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New York, New York - The U.S. Department of
Labor has filed a complaint seeking the appointment of an independent
fiduciary to take over the 401(k) plan of Mullaney Associates of West Long
Branch, New Jersey, whose 10 participants have been unable to access their
individual accounts. |
Participants
have not had access to their 401(k) accounts since the plan’s sole
trustee, Dominick Mullaney, the company owner and president, was convicted
for embezzlement of his company’s real estate clients’ trust accounts
in 2001. |
“Under
the Employee Retirement Income Security Act (ERISA), any person convicted
of embezzlement may not serve as a fiduciary to an employee benefit plan,
“ said Francis Clisham, director of the New York regional office of the
Employee Benefits Security Administration (EBSA), which investigated the
case. |
The
department filed in federal district court in Newark on Nov. 18, alleging
that because Mullaney was barred from engaging in any ERISA fiduciary
activities, the plan was not actively managed and was considered
abandoned. As a result, participants were not able to get information
about their account balances or to access them. It is believed the company
is now defunct but the plan, with approximately $8,967.79 in assets, has
not been terminated. |
Employers
and workers who have questions or concerns regarding their private-sector
pension and health plans can contact the EBSA regional office for help at
212.607.8600 or EBSA’s toll free number, 1.866.444.EBSA (3272). |
(Chao
v. Mullaney Associates 401(k) Plan)
Civil Action No. 03-CV-5405 |
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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. |
