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Court orders default judgment requiring fiduciary to restore more than $7,000 to Spencer & Associates Profit Sharing & 401(k) Plan in Springfield, Ohio
Date of Action: Jan. 25, 2013
Type of Action: Default judgment
Names of Defendant:Tannile Elizabeth Ortiz, a fiduciary to the Spencer & Associates LLC Profit Sharing and 401(k) Plan
Allegations: Ortiz failed to plead or otherwise defend against a complaint filed in August 2012 alleging that she as well as two other defendants, Bruce E. Spencer and Paul Olzeski, failed in their capacity as plan fiduciaries to remit $8,330.40 and to timely remit $8,378.36 to the Spencer & Associates LLC Profit Sharing and 401(k) Plan, allowing these funds to remain part of the company’s general assets and thereby be used for business expenses. Spencer & Associates, LLC ceased business operations in September of 2010. In October, Spencer closed the Plan account, removed all assets in the amount of $34,295.55 and deposited these assets into a personal bank account. Funds belonging to other plan participants have not been distributed.
Resolution: Ortiz has been ordered to restore $7,061.95, representing principal and lost opportunity costs to the Spencer & Associates LLC Profit Sharing and 401 (k) Plan within 30 days to nine plan participants. Ortiz will also waive $4,321.43 which is owed to herself, as a result of her fiduciary breaches and is permanently barred from serving as a fiduciary or service provider to any ERISA-covered employee benefit plan.
Court: United States District Court Southern District of Ohio, Western Division, Dayton
Docket Number: 3:12-cv-00283
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