The U.S. District Court for the Eastern District of Virginia has ordered the appointment of an independent fiduciary to distribute $535,790 in assets to 24 participants of the Cambridge Technology Group Inc. 401(k) Plan.
The judgement and order also removes Cambridge Technology Group Inc. and the company’s president and CEO Andrew Carrington as fiduciaries.
The action follows a U.S. Department of Labor Employee Benefits Security Administration (EBSA) investigation that found the McLean-based technology consulting company and its CEO violated the Employee Retirement Income Security Act (ERISA). Specifically, EBSA found that Carrington, who served as plan trustee, “failed to keep participants or the asset custodian aware of his contact information for distribution requests; did not process any distribution requests submitted by participants; and failed to terminate the plan.”
Cambridge Technology Group served as the plan’s administrator.
“Andrew Carrington and Cambridge Technology Group made it nearly impossible for plan participants to access their funds,” explains Michael Schloss, EBSA Regional Director. “They did not fulfill the duties owed to the employee retirement plan, and lost the trust of its participants.”