Boston, Massachusetts - Landscape Design Inc.,
Sudbury, Massachusetts, and its owner have restored $10,678.93 to its
401(k) plan to resolve a lawsuit filed by the U.S. Labor Department that
alleged violations of the Employee Retirement Income Security Act (ERISA).
Under a court order, Landscape Design and owner, David
J. Howe, were ordered to make restitution for all employee and employer
contributions plus opportunity losses to the plan. The restored funds will
be allocated to all eligible participants except Howe. The court also
required that an independent fiduciary manage or terminate the 401(k) plan
and properly distribute the assets to participants. Howe is barred from
serving in a fiduciary capacity to any ERISA-covered plan for five years.
Landscape Design was the administrator and Howe the
trustee for the plan, which was adopted in January 1999 to provide
retirement benefits for company employees. In October 2004, following an
investigation by the department’s Employee Benefits Security
Administration (EBSA), a lawsuit was filed alleging that money was
withdrawn from the plan in August 2001 and deposited into the company’s
business account. The suit also charged that the defendants failed to
forward to the plan employee contributions withheld from wages from 2001
through 2004 or failed to forward such amounts in a timely manner, as
required by ERISA. The suit was filed in U.S. District Court in Boston.
“Plan administrators and trustees are required to
function solely in the interests of plan participants and
beneficiaries,” said James Benages, EBSA’s regional director. “When
they fail to do so, the Labor Department will not hesitate to take
appropriate legal action on behalf of those workers who placed their funds
and their trust in the plan.”
This case was investigated by EBSA’s Boston regional
office. Employers and workers can reach the Boston office at 617.565.9600.
Help with problems relating to private-sector retirement and health plans
can also be obtained through EBSA’s toll-free number, 1.866.444.EBSA
(3272).
(Chao v David J. Howe, et al)
Civil Action No. 04-12140-MEL |