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Judge appoints independent fiduciary to terminate Grand Rapids, Mich.-based Grand Craft LLC 401(k) Plan, after former fiduciary restores plan losses
Date of Action: May 3, 2013
Type of Action: Consent Judgment and Order
Names of Defendant: Timothy Masek and Grand Craft LLC as fiduciaries to the Grand Craft LLC 401(k) Plan in Grand Rapids, Mich.
Allegations: Masek and Grand Craft LLC, in their capacity as fiduciaries failed to remit and timely remit 2008 and 2009 participant contributions to the Grand Craft LLC 401(k) Plan. These funds remained part of the company’s general assets and were used for business expenses.
Resolution: Following an investigation by the Cincinnati Regional Employee Benefits Security Administration Office into the plan, and the filing of a complaint by the Cleveland Associate Regional Solicitor of Labor in the United States District Court for the Western District Michigan seeking a judgment against the company and Masek, Masek paid the plan $9,742.69 on Dec. 11, 2012, for unremitted and untimely remitted participant contributions, and associated lost opportunity costs.
On May 3, 2013, Masek in his individual capacity and as plan fiduciary and an officer of the company, signed a Consent Judgment and Order in which Masek and the company are to be removed as fiduciaries of the plan and be permanently barred from serving as fiduciaries or service providers to any Employee Retirement Income Security Act covered employee benefit plan and permanently enjoined from violating the provisions of ERISA, are and are to pay all fees and expenses of the independent fiduciary.
AMI Benefit Plan Administrators Inc. of Cortland, Ohio, was appointed the independent fiduciary to distribute assets and terminate the plan.
The plan currently has assets of $25,710 for 12 plan participants.
Court: United States District Court Western District of Michigan, Grand Rapids, Mich.
Docket Number: 1:12-cv-01153-RHB
For help with problems related to private sector retirement and health plans, employers and workers can reach EBSA’s toll-free at 866-444-3272. Additional information about the agency 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.