Date of Action: Aug, 22, 2012
Type of Action: Complaint
Names of Defendant: Ricky N. Coley of West Bloomfield, Mich.
Allegations: Coley, as majority owner of the former Translogic Auto Carriers, LLC, of Bad Axe, Mich.,, was the Plan fiduciary to the Translogic Auto Carriers, LLC Welfare Benefit Plan. He violated the Employee Retirement Income Security Act by withholding employee contributions totaling $9,622.48, from participants’ paychecks for dental, vision, and life insurance benefits but failing to remit the contributions to the insurer. As a result of this failure to remit, the Plan’s insurance provider cancelled coverage retroactively, causing denied claims for Plan participants and beneficiaries totaling $17,313.50.
Resolution: The Department of Labor is seeking to have the defendant correct all prohibited transactions, restore all losses to the plan, including interest, and have the defendant permanently enjoined from serving as an ERISA fiduciary or service provider.
Court: United States District Court for the Eastern District of Michigan, Bay City Division.
Docket Number: 1:12-cv-13726
Employers and workers can reach EBSA toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans. Additional information can be found at www.dol.gov/ebsa.
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.