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Release Date: 10/25/2001
Release
Number: N201
Contact Name: Gloria Della
Phone Number: 202.219.8921 |
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New York, New York - The U.S. Department of Labor
obtained a court order on October 22 appointing Jacqueline Carmichael as the
independent fiduciary of the CCS Technologies 401(k) plan in New York City,
with authority to manage, terminate and distribute assets to retirement
participants. |
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CCS Technologies, Inc. was in the business of
computer and information technologies. The 401(k) plan became an orphan plan
after the company and its president, John Ruffo, failed to appoint a trustee to
succeed Ruffo after his conviction in March 1996 on criminal charges of bank,
wire and mail fraud. Ruffo, the plan's sole trustee, failed to surrender to
authorities on November 9, 1998 to serve his prison sentence, and is believed to be
in hiding, possibly abroad. |
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Plans become orphan plans when they are
abandoned by all 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 Labor Department filed a lawsuit on October 5 for
failure to appoint a successor trustee to administer the plan and failure to
terminate the plan and distribute its assets to participants. The plan covered
17 participants and approximately $107,000 in assets as of
August 20, 2001.
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“Our goal is to assure that consumers know
that the department is only a phone call away to help protect the benefits
promised by employers," said Francis Clisham, director of the New York Regional
Office of the Labor Department’s Pension and Welfare Benefits
Administration (PWBA). “Employers and workers can reach us at
212.337.2228 for help with any problems relating to private-sector pension and
health plans.” |
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The court action resulted from an investigation
conducted by the New York Regional Office of PWBA into alleged violations of
the Employee Retirement Income Security Act. |
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(Chao v. CCS Technologies, Inc. 401(k) Plan
Civil Action No. 01-8931) |
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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. |
