U.S. Department of Labor obtains default judgment appointing independent fiduciary for abandoned Georgia 401(k) plan

Archived News Release — Caution: Information may be out of date.

Atlanta – The U.S. Department of Labor has obtained a default judgment appointing M. Larry Lefoldt as the independent fiduciary for the 401(k) plan of defunct TDH Enterprise Corp. of Morrow, Georgia.

The judgment also removes TDH as a fiduciary to the plan and bars it from violating the provisions of the Employee Retirement Income Security Act. When TDH ceased operations in July 2005, the automotive repair company failed to terminate the plan and ensure that funds were distributed to participants. Another fiduciary to the plan, Barry Grosselin, has failed to administer the plan since that time.

“Even though the defendant has abandoned this plan, the Labor Department will not abandon the employees who count on these funds for their retirement,” said R.C. Marshall, regional director of the Labor Department’s Employee Benefits Security Administration (EBSA) in Atlanta.

The court order directs the independent fiduciary to assume control of the plan, including all assets, with the intention of terminating it and distributing any remaining assets to the plan participants. As of October 2006, the latest data available, the plan had five participants and $12,669 in assets.

Employers and workers can reach EBSA’s Atlanta Regional Office at 404.302.3900 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans. In fiscal year 2007, EBSA achieved monetary results of $1.5 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Chao v. TDH Enterprise Corp.
Civil Action File Number 1:07-cv-1764-JEC

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Archived News Release — Caution: Information may be out of date.