DOL Suit Retires Maine Excavator’s 401(k) Plan

Updated with additional information

A Maine federal judge approved the agreement that was reached between the Department of Labor, Claire Dubois and trust administrator Northeast Retirement Services to officially terminate the retirement plan of a Maine excavating company that closed in 1991 and whose owner, Claude Dubois, died in 2015.   

U.S District Court Judge for the District of Maine Nancy Torresen approved the compact to resolve the complaint brought by the DOL, seeking a court order to authorize the agreement that was reached with Claire Dubois to appoint an independent fiduciary. 

The DOL had alleged, in a complaint against Claude Dubois Excavating Inc. 401(k) Plan, that the company’s former president and director, Dubois, failed to terminate the plan or ensure the continuing appropriate operation of the retirement benefit, blocking workers and their beneficiaries from accessing the retirement assets. The plan holds approximately $25,587.55 in retirement assets for four participants.

“Participants will be unable to obtain their appropriate Plan distributions pursuant to the terms of the Plan unless and until this Court appoints a fiduciary for the Plan,” stated the complaint in Julie Su, Acting Secretary of Labor, U.S. Department of Labor v. Claude Dubois Excavating Inc..

American Funds Service Co. holds the plan assets and would not release the assets to the participants or beneficiaries without receiving authorization from a fiduciary to the plan.

The DOL filed to court on January 18 a consent judgment and order and agreement appointing as independent fiduciary Northeast Retirement Services. Chris Hulse, CEO at Northeast Retirement Services, signed the agreement to serve as the plan’s independent fiduciary on November 12, 2023, the docket shows.

Northeast Retirement Services “shall exercise reasonable care and diligence to identify and locate participants or beneficiaries of the Plan who are eligible to receive payment,” according to the agreement.

The independent fiduciary is empowered to administer and terminate the plan, in accordance with the plan’s governing documents, the Employee Retirement Income Security Act and the Internal Revenue Code.

Dubois signed the consent order and judgement January 12, and Celeste Moran, a senior trial attorney at the DOL’s Office of the Solicitor, signed on January 17.   

For services performed, the independent fiduciary’s appointment became effective on January 24, the date the court entered the judgment and order. Northeast Retirement Services will receive compensation from plan assets in the total amount of $1,500.

Representatives of Northeast Retirement Services did not respond to requests for comment about the complaint. A working contact for Dubois Excavating could not be found. Representatives of the DOL referred questions on the litigation to the court complaint.