US Labor Department secures judgment to distribute more than $310K to participants in G&H Technology Inc. 401(k) Plan in Camarillo, California

Date of action: July 22, 2015

Type of action: Default Judgment and Order

Name of defendants: G&H Technology Inc. 401 (k) Retirement Savings Plan; XAF Inc., a Delaware corporation

Allegations: Based on an investigation conducted by the U.S. Department of Labor’s Employee Benefits Security Administration, the department filed a civil complaint against XAF Inc., asking for the distribution of more than $310,000 in assets to the remaining participants in the 401(k) plan.

Specifically, the complaint alleged that as fiduciary of the plan, XAF Inc., formerly known as G&H Technology Inc., failed to properly complete the plan’s termination prior to the company’s assets being sold, preventing participants from obtaining distributions due to them. As of September 12, 2014, the plan still had eight participants and remaining assets totaling $310,899.

Resolution: On July 22, 2015, the court entered a default judgment and order against XAF Inc., removing the corporation as a fiduciary and appointing Thomas A. Dillon as an independent fiduciary to assume responsibility for the distribution of the plan’s assets to the participants.

Court: United States District Court for the Central District of California

Docket Number: 2:15-cv-00391-ODW-AGR

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