CHERRY HILL, NJ — The president of a defunct Cherry Hill company failed to distribute monetary benefits to employees after the company went under, according to the U.S. Department of Labor.
Antonio L. Sala was the president of Marlton Pike Precision, an industrial manufacturer that ceased operations in 2017. He was also the trustee for the company’s 401(k) plan.
When the company went out of business, all of its employees were entitled to benefit distributions from the plan. But Sala failed to take steps to either continue administrating the plan or terminate it, so the assets weren’t distributed to employees entitled to benefits, according to labor officials.
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Earlier this month, a federal judge ordered for an independent fiduciary, David Lipkin, to replace Sala as the plan’s trustee. Under Lipkin’s leadership, $47,891 in plan assets will be distributed to three former employees, according to the judgment from Feb. 7.
Sala must also cover the costs of appointing the independent fiduciary and subsequent administration of the 401(k) plan, which will be terminated.
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Patch’s efforts to contact Sala or a company representative were unsuccessful as of this writing.
Sala’s actions violated the Employee Retirement Income Security Act of 1974, according to labor officials. The federal law includes standards of conduct for fiduciaries of pension plans in private industry.
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