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Release Date: 09/17/2001
Release Number: V-481
Contact Name: Gloria Della
Phone Number: 202.219.8921
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Chicago, Illinois - The U. S. Department of
Labor obtained a court judgment September 7, 2001, appointing an
independent counsel to administer and distribute assets of the retirement
plan of now-defunct Humesco, Inc., formerly of Oak Brook, Illinois. The
judgment appoints M. Larry Lefoldt, CPA, to administer the plan, disburse
assets to eligible participants and terminate it. |
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The judgment also bars defendant Robert G. Hershenhorn
from interfering with the administration of the plan or payment of
benefits to the participants. The company was a human resource/employee
leasing company which went out of business in 1998. |
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The department sued Hershenhorn for alleged failure to
authorize distributions and/or rollovers to the various plan participants
from the plan trust account since July of 1998 and failure to formally
terminate the plan. The lawsuit also alleged the company as the plan
administrator did not administer, liquidate or distribute the plan’s
assets, thereby resulting in an orphan plan. |
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Plans become orphan plans when they are
abandoned by plan fiduciaries designated to manage and operate the plans
and their assets. As a result, participants and beneficiaries are unable
to receive pension distributions and to make inquiries about their
benefits. |
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The plan had 15 participants with vested account
balances totaling $45,373.36 as of March 31, 2001. When the company was
involuntarily dissolved by the State of Illinois on June 30, 1998, certain
participants and beneficiaries were unable to obtain distributions from
their individual account balances. |
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The court action resulted from investigation conducted
by the Chicago Regional Office of the Pension and Welfare Benefits
Administration (PWBA) into alleged violations of the Employee Retirement
Income Security Act (ERISA). |
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(Chao v. Humesco, Inc.
Civil Action No. CV 01C2925) |
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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. |
