PBGC Files Petition Seeking Documents California DB Plan Failed to Deliver

The Pension Benefit Guaranty Corporation filed a petition requesting a court order to enforce an October 2023 subpoena against the pension plan of electrical and data communications infrastructure company ACDD Inc., one which would require the California firm to produce documents relating to the plan and company’s financial condition.

In May 2021, following the yearly review of ACDD’s premium payments to the PBGC, the regulator discovered the sponsor had failed to pay required pension plan premiums since 2020, file its required Form 5500 disclosures since 2019 and likely failed to make required pension plan contributions since 2019, according to the lawsuit. 

The PBGC filed in U.S. District Court for the Central District of California the court petition to enforce the administrative subpoena on February 2, following another unsuccessful subpoena, filed in December 2023. The company “failed to respond to the Second ACDD Subpoena within the times prescribed,” according to the filing.

The PBGC investigated ACDD’s failure to make necessary payments to the pension plan and timely file its required disclosures; dispatched a letter to ACDD requesting the company provide to the PBGC information and documents relating to the plan and ACDD’s financial condition; and attempted to contact former CEO Valod Keshishian by phone between July 3 and July 7, 2023, but was unable to reach him, according to the filing.

Monte Keshishian is ACDD’s current registered agent, CEO, CFO, secretary and director; Valod Keshishian, who the filing states is still employed by ACDD, was ACDD’s previous registered agent, CEO, CFO, secretary and director. 

After the PBGC delivered the information request letter, the PBGC made multiple attempts to contact Valod Keshishian by phone, as well as emailing him and copying Monte Keshishian at their ACDD email addresses to request a response to the information request letter, the document states. 

The requested a court order directing ACDD, if it does not appear in court to contest the subpoena, to produce any and all documents and records responsive to the subpoena, the filing states. 

The ACDD Inc. Cash Balance Plan pension fund comprises $230,164 of retirement assets for five participants, according to the latest Form 5500 the sponsor filed with the Department of Labor in 2019.

ACDD was incorporated in 2006 and is headquartered in Glendale, California.

The PBGC was established under the Employee Retirement Income Security Act of 1974 to support the continuation and maintenance of defined benefit plans. The PBGC collects insurance premiums, set by Congress, from employers that sponsor DB pension plans.

The PBGC is represented by Karen Morris, its general counsel; Kartar Khalsa, its deputy general counsel; Stephanie Thomas and Erin Kim, assistant general counsels; and Zoe Wadge, attorney. 

Representatives of the PBGC returned a request for comment by email, noting the agency does not comment on ongoing litigation. ACDD representatives did not return a comment on the lawsuit. 

The lawsuit is case number 2:24-cv-00940.