LOS ANGELES – The U.S. Labor Secretary is seeking the removal of two people as administrator and trustee for a 401(k) plan for a business that ceased operating in 2007.
U.S. Department of Labor Secretary of Labor Thomas E. Perez filed a complaint on Dec. 15 in the U.S. District Court for the Central District of California against Urban Hotels Inc., doing business as LAX Plaza Hotel, and Urban Hotel 401(k) Plan and Trust alleging violation of the Employee Retirement Income Security Act.
According to the complaint, Hidebumi Minagawa and Hailu Solomon were named plan trustees and Voya Financial is the plan's asset custodian. The plaintiff alleges Minagawa told Voya the plan was terminated in 2007 and that Solomon only executed the necessary forms to authorize the distribution of assets for one participant in 2015. The suit states Solomon cannot be found, and Voya will not distribute the remaining 401(k) funds without a proper fiduciary.
The plaintiff seeks the removal of Minagawa from his position as the plan administrator, remove Solomon from his position as the named trustee, and any other relief as the court deems just. He is represented by Janet M. Herold and Danielle L. Jaberg of United States Department of Labor in San Francisco.
U.S. District Court for the Central District of California Case number 2:16-cv-09262-PA-AFM