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Release Date: 11/20/2003
Release Number: EBSA-03-779-DAL
Contact Name: Rita Ford
Phone Number: 202.693.8671
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Houston, Texas - The U.S. Department of Labor
has sued the trustee and plan administrator of the Krynik D.D.S. Inc.
dental practice in Houston, Texas, for abandoning the plan and failing to
distribute the assets to plan participants. |
“When
the defendants abandoned the plan, participants were unable to get
distributions or make inquiries about their benefits,” said Steve
Eischen, director of the department’s Dallas regional office of the
Employee Benefits Security Administration (EBSA), which investigated the
case. “Our case ensures that workers and their families have someone
with authority to transact plan business and distribute the plan’s
assets to participants.” |
The
November 17 suit alleges that Michael F. Krynik left his dental practice
and abandoned his role as the plan’s trustee in January 2001. Another
dentist subsequently bought the practice in February 2001 but did not
assume responsibility for the plan. Plans become orphan plans when they
are abandoned by all fiduciaries designated to manage and operate the
plan. |
The
suit alleges that Krynik and the dental practice violated the Employee
Retirement Income Security Act (ERISA) by failing to prudently manage or
terminate the plan after it was sold. Krynik also failed to repay a
$50,000 loan owed to the plan, file annual reports for 2000-2002, obtain
proper bonding and provide a forwarding address for plan inquiries. |
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The suit, filed in federal district court in Houston,
seeks to appoint an independent fiduciary to terminate the plan and
distribute the plan assets, permanently bar the defendants from serving as
fiduciaries to any plan governed by ERISA and order Krynik to restore all
losses with interest, including offset of his plan account to repay the
plan. |
The
plan had six participants and $292,725 in assets, according to the latest
financial information available to the Labor Department. |
Employers
and workers can reach EBSA’s Dallas regional office at 214.767.6831 or
through its toll-free number, 1.866.444.EBSA (3272), for help with
problems relating to private-sector pension and health plans. |
(Chao
v. Krynik)
Civil Action No. H-03-5283 |
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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. |
