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Release Date: 10/30/2002
Release Number: 02-10-30-137-NJ
Contact Name: Rita Ford
Phone Number: 202.693.8671
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Philadelphia, Pennsylvania - The U.S. Department
of Labor obtained a judgment and order on October 6, requiring Conolly
Calhoun & Conolly, Inc. (CCC), of Pennsauken, New Jersey, and its
chief executive officer to restore $70,477 to the company’s 401(k) plan
as restitution for failing to forward employee contributions to the plan. |
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The judgment also permanently bars the company and
chief executive officer Vincent Acerbo from serving any plan governed by
the Employee Retirement Income Security Act (ERISA) and requires that
Acerbo’s plan account be offset to pay money owed to the plan. |
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On April 16, 2001, the department sued the defendants
for failing to forward $64,216.01 in employee contributions to the company’s
401(k) profit sharing plan for the period August 1997 to November 1998.
Employee contributions were retained in the general account of Conolly
Calhoun & Conolly. The firm sponsored and served as plan administrator
of the plan on or about May 1998. |
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CCC is a wholesale baked goods distributor that
established the CCC, Inc. 401(k) profit sharing plan for 168 employees in
June 1995. The plan had $1,351,727 in assets as of May 31, 1997. |
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Philadelphia regional office director Mabel Capolongo
noted that employers with similar problems, who are not yet the subject of
an investigation by the Pension and Welfare Benefits Administration (EBSA),
may be eligible to participate in the department’s Voluntary Fiduciary
Correction Program (VFCP). Participation in the VFCP requires employers to
make workers whole but allows them to avoid EBSA enforcement actions and
civil penalties as well as any applicable excise taxes. |
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“The VFCP gives plan sponsors a way to come into
compliance with ERISA by restoring workers’ benefits while avoiding an
investigation by EBSA,” Capolongo said. “It protects workers’ health
and retirement benefits and allows us to focus our resources on those who
seek to avoid compliance.” For more information about the VFCP see
www.dol.gov/ebsa. |
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The judgment, which resulted from an investigation by
EBSA’s Philadelphia's regional office, was entered in the federal
district court in Camden, New Jersey. Employers and workers can contact the
regional office at 215.861.5300 or EBSA’s Toll-Free Employee &
Employer Hotline number 1.866.275.7922 for help with problems relating to
private-sector pension and health plans. |
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(Chao v. Acerbo
Civil Action No. 01-CV-1861) |
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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 202.693.7755. |
