EBSA News Release: November 23, 2010
Contact Name: Michael D'Aquino or Michael Wald
Phone Number: 404-562-2076 / 404-562-2078
Email: D'Aquino.Michael@dol.gov / Wald.Michael@dol.gov
Release Number: 10-1592-ATL
US Labor Department settles dispute with former Tampa, Fla.,
corporation over retirement plan assets
TAMPA, Fla. – The U.S. Department of Labor
has obtained consent judgments requiring Medipharm-Rx Inc. and two
401(k) plan administrators to restore more than $10,000 in losses
incurred by the company’s 401(k) plan.
The judgments follow an investigation by the Labor
Department’s Employee Benefits Security Administration into alleged
violations of the Employee Retirement Income Security Act. In the
lawsuit being resolved, the Labor Department alleged that the defendants
failed to forward to the plan contributions deducted from employees’
paychecks, terminate the plan when the pharmacy ceased operations in
January 2007, obtain an adequate fidelity bond for the plan and file
required reports concerning the plan.
Filed in the U.S. District Court for the Middle
District of Florida, Tampa Division, the consent judgments require that
defendants Brian Green and Medipharm-Rx pay $10,153.57 to the plan for
the benefit of plan participants and beneficiaries, and $2,030.71 to the
Labor Department as a penalty.
Additionally, defendant Grady Morrell will pay
$2,030.71 to the plan for the benefit of plan participants and
beneficiaries plus $1,500 to cover fees and costs of the successor
fiduciary. Morrell also waived his right to receive restored
contributions and interest to his plan account for calendar year 2006,
estimated to be $1,069.40, and agreed to allow any interest he may have
in any existing or future assets of the plan to be applied as an offset
against the amounts due to the plan.
All defendants agreed to be permanently barred from
acting as fiduciaries of any plan covered by ERISA. Larry Lefoldt was
appointed as successor fiduciary to the plan.
“The Labor Department is pleased to resolve this
case and have the defendants restore funds to the plan for the benefit
of its participants and beneficiaries,” said R.C. Marshall, EBSA’s
regional administrator in Atlanta, Ga.
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 applicable excise
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.
For more information, see http://www.dol.gov/ebsa.
Solis v. Medipharm-RX Inc.
Civil Action File Number 8:10-cv-569-T-33TBM
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