The ex-president of a now-defunct Cherry Hill company, Marlton Pike Precision, has been found in violation of labor laws by the U.S. Department of Labor. Antonio L. Sala, who served as both the president and trustee of the company’s 401(k) plan, allegedly neglected to distribute $48,000 in pension assets to former employees after the business ceased operations in 2017.
When Marlton Pike Precision closed its doors, all employees were entitled to receive benefit distributions from the 401(k) plan. However, Sala reportedly failed to take the necessary steps to either continue administering the plan or terminate it. Consequently, the assets earmarked for employees’ benefits remained undistributed.
In response to Sala’s actions, a federal judge recently mandated the appointment of an independent fiduciary, David Lipkin, to replace Sala as the plan’s trustee. Under Lipkin’s oversight, a total of $47,891 in plan assets will be distributed to three former employees, as outlined in the judgment issued on February 7th.
In addition to the distribution of assets, Sala is required to cover the costs associated with appointing the independent fiduciary and the subsequent administration of the 401(k) plan, which will ultimately be terminated.
Despite attempts to reach Sala or a representative for comment, Patch was unsuccessful at the time of writing.
The U.S. Department of Labor contends that Sala’s actions constitute a violation of the Employee Retirement Income Security Act of 1974 (ERISA). This federal law establishes standards of conduct for fiduciaries managing pension plans in the private industry.
