Date of Action: Oct. 27, 2011
Type of Action: Consent order and judgment
Name(s) of Defendant: Joseph R. Kvidera, individually and as a fiduciary to the Procedo, Inc. 401(k) Profit Sharing Plan a/k/a the Procedo, Inc. 401(k) & Profit Sharing Plan.
Allegations: Kvidera, in his capacity as a fiduciary to the Procedo, Inc. 401(k) Profit Sharing Plan, failed to ensure that a total of $10,740 consisting of employee contributions and loan repayments, and lost opportunity costs for unremitted and untimely remitted employee contributions and loan repayments for the period of March 30, 2007, through Jan. 15, 2010, were forwarded to the plan.
Resolution: The court ordered Kvidera to repay $10,740 to those non-fiduciary plan participants who were employees of Procedo, Inc., who were plan participants during the period from March 30, 2007, through Jan. 15, 2010, and had voluntary employee salary contributions and/or employee loan repayments withheld from their pay for contribution to the plan during this period where contributions were never remitted or were untimely remitted to the plan. The $10,740 includes both amounts that were never remitted and lost opportunity costs due to participants of the plan, excluding any amounts due to Kvidera. Within 30 days of the close of Kvidera's Chapter 7 bankruptcy or the Trustee's final accounting in the bankruptcy, Kvidera shall make payments of $895 per month for 12 consecutive months to the plan.
Except for purposes of making payments to the plan and distributing its assets under the terms of the Consent Judgment, Kvidera shall be permanently enjoined from serving as a fiduciary or service provider with respect to any employee benefit plan subject to ERISA. Under the terms of the Consent Judgment, he shall also have the duty to cooperate fully in the termination of the plan and the distribution of its assets, to the extent that such cooperation is required.
The United States Bankruptcy Court for the District of Minnesota entered an order on Oct. 27, providing Kvidera’s debt to the plan was non-dischargeable in the Department's Chapter 7 bankruptcy adversary case number: 11-03134.
Court: United States District Court, District of Minnesota, Minneapolis, Minn.
Docket Number: 11-cv-01442
Bankruptcy Court: United States Bankruptcy Court, District of Minnesota, St. Paul, Minn.
Adversary Case Number: 11-03134
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.