The Department of Labor (DOL) successfully obtained a consent judgment to remove one company as fiduciary of its 401(k) plan and has sued a defunct nonprofit over another plan.
In the first case, DOL filed a complaint to remove Encorium Group Inc., formerly a global clinical research company, as fiduciary of the company's 401(k) plan. An investigation by the Employee Benefits Security Administration (EBSA) found that Encorium Group failed to terminate the plan, despite ceasing all business operations on or about October 2009.
Since the company ceased operations, neither it nor any of its former officers have taken fiduciary responsibility for the plan's operation and administration. That left its remaining participants in limbo.
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