Compliance March 16, 2011

DoL Sues over Abandoned Plan

The U.S. Department of Labor (DoL) sued a now-defunct company alleging it walked away from its 401(k) plan without distributing $1.3 million in assets to participants.
Reported by

The DoL Employee Benefits Security Administration (EBSA) said Parkland Hotel Investors, fiduciary of the Northland 401(k) plan, abandoned the plan in July 2009 when it shut down operations. As a result of the abandonment, 96 participants and beneficiaries are unable to communicate with the plan fiduciary or obtain distributions from their accounts, according to EBSA.

“Workers deserve to keep the benefits they have earned regardless of a fiduciary’s business status,” said Phyllis C. Borzi, assistant secretary for EBSA. “The department is taking action to ensure that these plan participants have access to the benefits owed to them.”

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The suit was filed in federal district court in Minneapolis.

Deals & People March 16, 2011

DWS Investments Expands National Accounts Coverage

DWS Investments, the U.S. retail unit of Deutsche Bank’s Asset Management division, appointed Tiffani Potesta as a Director and Senior National Account Manager. 
Reported by

Potesta will be responsible for firm relationships in the national broker/dealer (B/D) channel. She will be based in New York and report to Michael Woods, Managing Director, CEO and US Head of Distribution for DWS Investments Distributors, Inc.

Potesta has more than 15 years of experience working with asset managers, banks, insurance companies, regional and national B/D firms, according to DWS. She joins the firm from First Eagle Funds, where she served as a Director and Head of National Accounts, responsible for strategic business development and management of all client relationships. Before First Eagle Funds, she was a Vice President, National Account Manager at Allianz Global Investors.

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