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Release Date: 05/04/2001
Release Number: 04
Contact Name: Sharon Morrissey
Phone Number: 202.219.8921
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The U.S. Department of Labor has obtained a consent
judgment requiring the plan administrator of the Carroll (Iowa)
Manufacturing Inc. 401(k) plan to resume his duties as trustee of the plan
and to retain American Trust of Dubuque, Iowa as a third-party
administrator to assist him in fulfilling his obligations to the plan. |
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Patrick Malloy has been ordered to perform all duties
necessary to assist in the administration of the 401(k) plan of his now
defunct company, including but not limited to making distributions to the
plan’s participants and eventual termination of the plan. |
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According to the lawsuit, when Carroll Manufacturing,
Inc. (CMI) ceased doing business, Malloy and other named trustees
abandoned all administrative and fiduciary duties associated with the
plan. Participants and beneficiaries have been unable to obtain
distributions from their individual account balances in the plan. Such
plans are considered by the Labor Department to be orphan plans
when they are abandoned by plan fiduciaries designated to manage and
operate the plans and their assets. |
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Carroll Manufacturing was a manufacturing firm, located
in Carroll, Iowa. Its plan had 25 participants and funds totaling
$40,868.35 on January 31, 1997. |
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“Our goal is to assure that consumers know the
department is only a phone call away to help protect the benefits promised
by employers,” said Gregory P. Egan, director of the Kansas City
Regional Office of the department’s Pension and Welfare Benefits
Administration, which conducted the investigation. “Employers and
workers can reach us in at 816.426.5131 for help with any problems
relating to pension and health plans provided in the private sector.” |
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The lawsuit was filed on April 23 in the federal
district court in the Northern District of Iowa in Sioux City. The consent
judgment was entered on April 25. |
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(Chao v. Patrick Malloy and Carroll Manufacturing, Inc.
Civil Action No. 01-3047 MWD) |
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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 202.693.7775. |
