Please note: As of January 20, 2021, information in some news releases may be out of date or not reflect current policies.

News Release

U.S. Labor Department Sues Fiduciaries of Illinois Simple IRA Plan Over Misuse of Employee Contributions

Archived News Release — Caution: Information may be out of date.

Chicago, Illinois - The U.S. Department of Labor has sued defunct L.R.D.S., Inc., of Orland Park, Illinois and an owner of the floral distributor for failing to forward employee contributions to the company’s Simple IRA Plan.

“This lawsuit underscores the U.S. Labor Department’s commitment to hold accountable those who are entrusted with the assets of workers’ retirement plans,” said Ken Bazar, director of the Employee Benefits Security Administration’s (EBSA) Chicago regional office.

The suit filed on May 6, 2004, alleges that Patrice A. Dodd and the company violated the Employee Retirement Income Security Act (ERISA) by failing to remit employee contributions to the plan at various times between January 2000 and March 2002. The suit alleges that LRDS retained plan assets with the company’s general assets. The suit was filed in federal district court in Chicago.The suit seeks to require that Dodd restore all losses with interest, correct any transactions prohibited by law and permanently bar her from service to any plan governed by ERISA.

LRDS was a wholesale distributor of flowers, plants and gardening accessories that was subsequently sold in October 2002. The plan covered 11 participants. At the time of the improper actions, Dodd co-owned the company and was a plan fiduciary.

In fiscal year 2003, EBSA achieved record monetary results of $1.4 billion related to the pension, 401(k), health and other benefits of millions of American workers and their families. The case was investigated by the department’s regional EBSA office in Chicago. Employers and workers can contact the regional office at 312.353.0900 or EBSA’s toll free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector pension and health plans.

(Chao v. Dodd)
Civil Action No. 04-C-3228

U.S. Labor Department news releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the COAST office. Please specify which news release when placing your request at 202.693.7765 or TTY 202.693.7755. The U.S. Department of Labor is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.

Archived News Release — Caution: Information may be out of date.

Agency
Employee Benefits Security Administration
Date
May 7, 2004
Release Number
04-698-CHI