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EBSA News Brief

U.S. Department of Labor
Office of Public Affairs
Atlanta, Ga.
Release Number: 12-ATL-050
Complaint: 3:11-cv-00071-DCR

For Immediate Release: February 13, 2012
Contact: Michael D'Aquino or Michael Wald
Phone: 404-562-2076/404-562-2078
Email: D'Aquino.michael@dol.gov/Wald.michael@dol.gov

Solis v. William H. Kiser and Mary Sue Kiser, United State District Court, Eastern District (Frankfort), KY
Solis v. William H. Kiser, U.S. Bankruptcy Court (Fort Myers), FL
Solis v. Mary Sue Kiser, U.S. Bankruptcy Court (Fort Myers), FL

Date of Action:  Feb. 10, 2012

Type of Action:  Judgment by Default

Name(s) of Defendant: William H. Kiser and Mary Sue Kiser, Irotas Manufacturing Company, LLC 401(k), and Irotas Manufacturing Company, LLC

Allegations: Between June and August 2008, William H. Kiser and Mary Sue Kiser, as trustees to the Irotas Manufacturing Company, LLC 401(k) Plan, transferred $487,138.08 of plan assets out of the plan to benefit the company.

Resolution: The U.S. Department of Labor has obtained a default judgment ordering Irotas Manufacturing Company, LLC and its former owners and officers, William H. Kiser and Mary Sue Kiser, to restore $647,320.84 to the company’s 401(k) plan for employees.  The judgment resolves the Labor Department’s allegations that the defendants improperly transferred $487,138.08 of Plan assets that were never returned to the Plan or distributed to participants and beneficiaries of the Plan.  Under the judgment, entered in the United States District Court for the Eastern District of Kentucky, the Kisers and the company must make restitution to the Plan of $647,320.84, which includes lost opportunity costs.  William H. Kiser and Mary Sue Kiser are also permanently enjoined from acting as a fiduciary or service provider to any plan covered by the Employee Retirement Income Security Act. 

In a separate legal action, The United States Bankruptcy Court for the Middle District of Florida, entered an order, February  8, 2012, providing William H. Kiser’s total debt to the plan was non-dischargeable under Chapter 7 bankruptcy case 9:11-bk-09809.   The United States Bankruptcy Court for the Middle District of Florida, entered an order, February 8, 2012, providing Mary Sue Kiser’s total debt to the plan was non-dischargeable under her Chapter 7 bankruptcy case 9:11-bk-09810. 

Courts: Eastern District of Kentucky, (Frankfort, KY)
Middle District of Florida, (Fort Myers, FL)

Docket Numbers: 3:11-cv-00071; 9:11-ap-01062 and 9:11-ap-01063

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.