EBSA News Brief
Office of Public Affairs Atlanta GA
For Immediate Release: February 11, 2014
Contact: Michael D'Aquino or Lindsay Williams
Phone: (404) 562-2076 or (404) 562-2078
Email: firstname.lastname@example.org or email@example.com
Release Number: 14-223-ATL (25)
Perez v. Gail Garrow involving failure to properly administer and terminate
IAQ Inc. company’s 401(k) plan in Captiva, Fla.
Date of Action: Feb. 11, 2014
Type of Action: Consent Judgment and Order
Name(s) of Defendant(s): Gail Garrow, IAQ Inc., and IAQ Inc. 401(k) Plan
Allegations: In January 2001, IAQ Inc., an information technology company based in Captiva, Fla., established a 401(k) plan for its employees. In April 2009, defendant Gail Garrow terminated the IAQ Inc. 401(k) plan and requested that the plan’s fund custodian, John Hancock, transfer the plan’s assets totaling approximately $211,334 into an operating account maintained by IAQ. Upon IAQ receiving the transfer of the plan’s assets, as directed by Garrow, the plan’s assets were placed in the IAQ operating account and commingled with IAQ’s general assets. On or about the date of the transfer there were 45 participants in the plan. During the course of its investigation, the U.S. Department of Labor’s Employee Benefits Security Administration learned that defendants Garrow and IAQ distributed $74,125 of the plan’s assets to five plan participants. The account balances of the remaining 40 participants were not distributed and remained in the operating account of IAQ.
Resolution: In the consent judgment and order, the court appointed Jeanne Bryant of Brentwood, Tenn., as the plan’s independent fiduciary for the purpose of terminating the plan and distributing $155,332.77, its remaining assets and lost earnings. The order also permanently enjoined IAQ Inc. and Garrow from acting as a fiduciary to any employee benefit plan subject to the Employee Retirement Income Security Act.
Court: United States District Court for the Middle District of Florida, Fort Myers Division
Docket Number: 2:14-cv-00067-SPC-CM
U.S. Department of Labor news 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.