For Immediate Release: January 9, 2012
Contact: Joanna Hawkins or Leni Fortson
Release Number: 11-1591-PHI (ebsa 12-002)
Bethlehem, Pa., company agrees to restore more than $34,300 to
employee 401(k) plan following US Labor Department lawsuit
BETHLEHEM, Pa. — The U.S. District Court for the Eastern District of Pennsylvania has approved a consent judgment and order to restore $34,310 in plan assets to the employee 401(k) plan of Monocacyfabs Inc. in Bethlehem. The action resolves a lawsuit filed by the U.S. Department of Labor against the company and plan trustees Michael Poole and Jean Shipley.
The suit resulted from an investigation by the Labor Department’s Employee Benefits Security Administration, which found that the defendants failed to remit employee contributions and also remitted certain contributions to the plan late and without interest. These alleged violations of the Employee Retirement Income Security Act occurred from January 2007 through June 2010.
“The defendants failed to meet their fiduciary obligations as plan trustees by not acting in the best interest of plan participants,” said Norman Jackson, acting director of EBSA’s Philadelphia Regional Office, which conducted the investigation. “The department took legal action to protect the hard-earned contributions made by Monocacyfabs employees.”
The case was litigated by the department’s Regional Office of the Solicitor in Philadelphia. Employers and workers can contact EBSA’s Philadelphia Regional Office at 215-861-5300 or 866-444-3272 for help with problems relating to private sector pension and health plans.
EBSA protects the retirement, health and other workplace-related benefits of America’s workers, retirees and their families. Additional information can be found at www.dol.gov/ebsa.
Solis v. Monocacyfabs Inc. et al.
Civil Action Number: 11-cv-6949
U.S. Department of Labor news materials are accessible at www.dol.gov. The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling 202-693-7828 or TTY 202-693-7755.