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Release Date: May 6, 2009
Release Number: 09-483-ATL (108)
Contact Name: Michael D'Aquino/Michael Wald
Phone Number: 404.562.2076/404.562.2078
Atlanta – William Traylor, former president of Homeland Entertainment Group Inc. in Nashville, Tennessee, will restore $20,092 to the company’s retirement plan as part of a federal consent order and judgment obtained by the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA).
The judgment follows a lawsuit filed in 2008 by the Labor Department in the federal district court for the middle district of Tennessee. The suit alleged that the defendant violated his fiduciary duties under the Employee Retirement Income Security Act (ERISA) by co-mingling plan funds with the general assets of the company.
“We are very pleased that Mr. Traylor has agreed to restore funds that belong to the participants of this plan,” said R.C. Marshall, regional director of the department’s EBSA office in Atlanta.
Besides paying the restitution, Traylor will be assessed a civil money penalty as required under ERISA.
If he fails to promptly distribute all of the plan’s cash assets to participants and beneficiaries, the judgment states the department may seek the appointment of an independent administrator to distribute the assets.
Employers with similar problems who are not yet subjects of EBSA investigations may be eligible to participate in the department’s Voluntary Fiduciary Correction Program. Participation requires employers to make workers whole but allows them to avoid EBSA enforcement actions and civil penalties as well as any applicable excise taxes. For more information, see www.dol.gov/ebsa.
In fiscal year 2008, EBSA achieved monetary results of $1.2 billion related to pension, 401(k), health and other benefits for millions of American workers and their families. Employers and workers can reach EBSA’s Atlanta Regional Office at 404.302.3900 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans.
Solis v. William Traylor
Civil Action Number 3:08-cv-00607-WJH
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