EBSA News Brief
Atlanta GA Office of Public Affairs
For Immediate Release: May 1, 2013
Contact: Michael D'Aquino or Lindsay Williams
Phone: 404-562-2076 or 404-562-2078
Email: email@example.com or firstname.lastname@example.org
Release Number: 13-415-ATL-88
Harris v. Covenant Equipment Corp. involving failure to remit employee
contributions to the company’s pension plan in Rock Hill, SC
Date of Action: April 30, 2013
Type of Action: Complaint
Name(s) of Defendant(s): Covenant Equipment Corporation, doing business as Wholesale Fork Lifts Inc., and Mark Sowka
Allegations: In February 2005, Covenant Equipment, based in Rock Hill, S.C., established a SIMPLE IRA plan for its employees. During the course of an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration, the agency found that from 2007 to 2009, Covenant Equipment Corp. and Mark Sowka failed in their fiduciary responsibility to forward $21,348.14 in employee contributions to the plan in a timely manner and also allowed the funds to be commingled with general company assets. During same period, Covenant and Sowka failed to collect and remit $11,254.53 in matching employer contributions to the plan.
Resolution: The department is asking the court to order the defendants to restore all losses, including interest or lost opportunity costs to the plan, which occurred as a result of the defendant’s breach of their fiduciary obligations; and, to permanently enjoin the defendants from serving as fiduciary, administrator, officer, trustee, custodian, agent, employee, representative, or having control over the assets of any employee benefit plan subject to the Employee Retirement Income Security Act.
Court: United States District Court, for the District of South Carolina
Docket Number: 3:13-cv-00262
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.