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EBSA News Release: [07/11/2006]
Contact Name: John M. Chavez
Phone Number: (202) 693-4676 or (617) 565-2075
Release Number: 06-1063-BOS

U.S. Labor Department Sues Salem, New Hampshire, Employer to Restore Funds to Company Profit Sharing Plan

BOSTON — The U.S. Department of Labor has sued the owner and operator of Landry Architects of Salem, N.H., seeking restoration of funds to the company's profit sharing plan.

The Labor Department's suit, filed in U.S. District Court for the District of New Hampshire, alleges that, Richard E. Landry Sr. failed to discharge his fiduciary duties with respect to the plan between January 1994 and November 2004. The suit alleges that Landry hired Bradford D. Bleidt and his companies, Allocation Plus Asset Management and Financial Perspectives Planning Services, to provide investment and financial management services to the plan. During that time, Bleidt converted $563,101 of the profit sharing plan's funds for his own benefit. In December 2005, Bleidt was convicted of criminal charges and sentenced to 11 years in prison.

"Employers are responsible for keeping a close watch over their workers' benefit plans," said U.S. Secretary of Labor Elaine L. Chao. "The department's legal action in this case seeks to recoup the funds taken from the workers' benefit plan and bar the employer from ever again being a benefit plan trustee."

As the plan's trustee, Landry retained primary responsibility for managing the plan's assets. The suit alleges that he failed to adequately monitor and control Bleidt's activities, to oversee and control the plan's assets and to secure a bond to protect the plan's assets. The department's suit asks the court to permanently prohibit Landry from serving as a fiduciary to any employee benefit plan covered by the Employee Retirement Income Security Act (ERISA) and seeks appointment of an independent trustee to manage the plan. The suit also asks the court to order Landry to restore to the plan all losses that resulted from breaches of his fiduciary duties, plus interest.

The Labor Department's legal action resulted from an investigation conducted by Employee Benefits Security Administration's (EBSA) Boston regional office. In fiscal year 2005, EBSA achieved monetary results of $1.7 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Employers and workers can contact EBSA's Boston regional office at (617) 565-9600 or EBSA's toll-free number (866) 444-EBSA (3272), for help with problems relating to private-sector pension and health plans. Additional information can be found at www.dol.gov/ebsa.