EBSA News Brief
Office of Public Affairs Boston MA
For Immediate Release: January 23, 2014
Contact: Ted Fitzgerald or Andre J. Bowser
Phone: (617) 565-2075 or (617) 565-2074
E-mail: firstname.lastname@example.org or email@example.com
Release Number: BOS 2014-010
Perez v. Darryl J. Grandy and the Syracuse Lithographing Co. Employees
Profit Sharing Retirement Plan in Syracuse, NY
Date of Action: Jan. 21, 2014
Type of Action: Consent order and judgment
Defendants: Darryl J. Grandy and the Syracuse Lithographing Co. Employees Profit Sharing Retirement Plan
Allegations: Darryl J. Grandy was an officer, director and shareholder of Syracuse Lithographing and was a fiduciary and the designated trustee for the Syracuse Lithographing Co. Employees Profit Sharing Retirement Plan. Between January 1, 2009 and December 31, 2011, Grandy failed to timely remit employee contributions and loan repayments into the plan, causing lost earnings of at least $2,013.00. During that same time period, Grandy withheld employees’ contributions from their wages but failed to deposit at least $20,062.00 in employee’s contributions and loan repayments. The plan currently has 12 participants and $328,000 in assets.
On Oct. 23, 2013, the department filed a lawsuit seeking an order requiring Grandy to restore all losses plus interest and/or lost opportunity earnings incurred by the plan; removal of Grandy as plan trustee; provision of all books, documents and records relating to the finance and administration of the company and the plan to the department; the permanent enjoinment of Grandy from serving as a plan trustee and future ERISA violations; and appointment of an independent fiduciary for the plan.
Resolution: The consent judgment requires Grandy to restore to the plan $20,063.63 in withheld employee contributions plus $2,625 in lost opportunity costs. Once the funds are fully restored, Grandy will distribute them to the participants, and then terminate the plan. Upon the plan’s termination, Grandy will be permanently prohibited from serving as a fiduciary or service provider to any employee benefit plan covered under Title I of the Employee Retirement Income Security Act.
Court: U.S. District Court for the Northern District of New York
Docket Number: 5:13-CV-1318 (GLS)(TWD)
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.