EBSA News Brief
Chicago IL Office of Public Affairs
For Immediate Release: May 13, 2013
Contact: Scott Allen or Rhonda Burke
Phone: 312-353-6976 or 312-353-4807
Email: firstname.lastname@example.org or email@example.com
Release Number: EBSA-CHI-13-16
Judge orders former CEO to restore more than $18,000 to
Fresh Start Inc. 401(k) Plan in Cleveland, Ohio
Date of Action: May 10, 2013
Type of Action: Consent Order and Judgment
Names of Defendant: Ruby J. Black, individually and as a fiduciary to the Fresh Start Inc. 401(k) Plan and the Fresh Start, Inc. 401(k) Plan.
Allegations: Black, in her capacity as the fiduciary of the Fresh Start Inc. 401(k) Plan, failed to remit $15,912.85 in participant contributions and loan repayments to the plan. Additionally, Black, who was the company’s chief executive officer, untimely remitted other participant contributions and loan repayments to the plan up to 566 days after they should have been remitted.
Resolution: On May 10, 2013, a consent order and judgment was entered in the U.S. District Court, Northern District of Ohio that orders Black to pay $18,385.41 to the Fresh Start Inc. 401(k) Plan for restoration of unremitted participant contributions and loan repayments and applicable lost opportunity costs. During the period of Aug. 3, 2010, to May 27, 2011, Fresh Start Inc. allegedly withheld $15,912.85 in participant contributions and loan repayments from employee paychecks and retained the funds in the corporate account.
The consent order and judgment also removes Black as a fiduciary of the employee benefit plan and bars her from serving as a fiduciary or service provider to any Employee Retirement Income Security Act covered employee benefit plan in the future.
The court has appointed LeFoldt & Company, P.A. as an independent fiduciary of the employee benefit plan. The company will terminate the plan and distribute the assets to qualified participants.
Fresh Start Inc. ceased operations July 1, 2011.
Court: United States District Court for the Northern District of Ohio, Cleveland
Docket Number: 1:12-cv-02983
For help with problems related to private sector retirement and health plans, employers and workers can reach EBSA’s toll-free at 866-444-3272. Additional information about the agency can be found at www.dol.gov/ebsa.
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.