U.S. Labor Department Sues Ligonier, Pennsylvania Employer for Pension Plan Violations

Archived News Release — Caution: Information may be out of date.

Philadelphia, Pennsylvania - The U.S. Department of Labor has sued now-defunct E.R. Caldwell Land Clearing Contractors Inc. (ERC), Ligonier, Pennsylvania, for alleged misappropriation of funds from the company’s 401(k) profit sharing plan and violations of the federal law that protects private retirement, health and other benefit plans.

According to Mabel Capolongo, regional director for the department’s Employee Benefits Security Administration (EBSA) in Philadelphia, the lawsuit was filed in U.S. District Court for the Western District of Pennsylvania against the company and plan trustee William R. McAnulty.

The suit alleges that the defendants failed to hold plan assets in trust as required by law and subsequently transferred the funds to McAnulty’s personal account, a violation of the Employee Retirement Income Security Act (ERISA).

“The department will not tolerate this type of behavior by fiduciaries who act solely in their own interest,” said Capolongo. “Our legal action sends a message that the government will not hesitate to use its enforcement authority to protect the benefits of workers and their families from abuse.”

The suit asks the court to order ERC and McAnulty to restore any losses to the plan; remove them as plan fiduciaries; permanently enjoin them from acting in any fiduciary capacity in any other plan; and appoint an independent fiduciary to manage the plan, terminate the plan and distribute assets to eligible participants.

The suit resulted from an investigation conducted by EBSA’s regional office in Philadelphia. In fiscal year 2005, EBSA achieved monetary results of $1.7 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Employers and workers can contact the Philadelphia office of EBSA at 215.861.5300 or through its toll-free number, 1.866.444.EBSA (3272), for more information on the requirements of ERISA. Additional information can be found at www.dol.gov/ebsa.

(Chao vs. William R. McAnulty, E.R. Caldwell Land Clearing Contractors, Inc.)
Civil Action No. 2:06-cv-01306-TMH

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Archived News Release — Caution: Information may be out of date.

Contact Name: Kate Dugan
Phone Number: 215.861.5101