EBSA News Brief
U.S. Department of Labor
For Immediate Release: May 9, 2011
Solis v. Ted Ayoub involving the Yamasaki Associates Inc.
employee benefit plans in Troy, Mich.
Date of Action: May 2, 2011
Type of Action: Complaint
Name(s) of Defendant: Ted Ayoub, individually and as a fiduciary of the Yamasaki Associates Inc. Employees’ 401(k) Savings and Investment Plan and Trust Plan and the Yamasaki Associates Inc. Group Health Plan and Yamasaki Associates Inc.
Allegations: Ayoub, in his capacity as an alleged fiduciary to the Yamasaki Associates Inc. 401(k) Saving and Investment Plan and Trust Plan (pension plan) allegedly failed to timely remit employee contributions to the plan from Aug. 7 to Sept. 4, 2008, and from Sept. 18 to Dec. 25, 2008.
From January through March 2009, Ayoub is alleged to have failed to forward employee contributions to the health plan and used the money for the general operating expenses of Yamasaki Associates Inc. Those monies were never remitted to the health plan and were retained in the company’s general operating funds.
Resolution: The Department of Labor is asking the court to order Ayoub and Yamasaki Associates Inc. to make good to the plans any losses, including lost opportunity cost and to require Ayoub to secure a fidelity bond which is to remain active until the plans are terminated.
The suit also seeks to permanently enjoin Ayoub and Yamasaki Associates Inc. from acting as a fiduciary or service provider with respect to any employee benefit plan subject to the Employment Retirement Income Security Act. The department has asked the court to appoint an independent fiduciary to oversee the Plans after Ayoub and Yamasaki Associates Inc. are removed.
Yamasaki Associates Inc., which sponsored the plans, ceased business operations in 2009 but has not filed for bankruptcy. Ayoub, who owns 66 percent of Yamasaki Associates Inc. filed for personal bankruptcy under Chapter 7 on July 16, 2010, Eastern District of Michigan, Case No. 10-62790.
Court: Eastern District of Michigan, Detroit, Mich.
Docket Number: 2:11-cv-11935
# # #
U.S. Department of Labor materials are accessible at www.dol.gov. The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling 202-693-7828 or TTY 202-693-7755.