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Court orders fiduciaries to restore more than $34,000 in losses to Hostetler Door Inc. 401(k) Plan in Goshen, Ind.
Date of Action: May 28, 2013
Type of Action: Consent order and judgment
Names of Defendant: Hostetler Door Inc., Glen Hostetler and Julie Hostetler, as fiduciaries to the Hostetler Door Inc. 401(k) Plan, and the Hostetler Door Inc. 401(k) Plan.
Allegations: During the period from Jan. 6, 2006, to April 16, 2010, Hostetler Door withheld $117,233.18 in participant contributions and $36,557.45 in participant loan repayments and failed to timely remit the amounts to the Hostetler Door Inc. 401(k) Plan. Of these amounts, and during the same period, the company failed to remit $21,552.07 in participant contributions and $14,885.90 in participant loan repayments to the plan. The money was retained in the company’s general assets.
Resolution: The consent judgment decrees that Glen Hostetler, Julie Hostetler and Hostetler Door Inc. are jointly and severally liable to the plan in the amount of $34,572.95, which represents the unremitted employee contributions and loan repayments, as well as lost opportunity costs attributable to the unremitted and untimely amounts for which they were responsible. On March 8, 2013, the amount due was paid directly to the plan.
Both Glen Hostetler and Julie Hostetler have waived any claim to personal monies due from the plan. The judgment further requires that Glen Hostetler and Julie Hostetler be permanently enjoined from serving as a fiduciary or service provider to any ERISA-covered plan.
Benefit Solutions of Indianapolis, Ind., has been appointed as the plan’s independent fiduciary and will terminate the plan and administer benefits to eligible participants and beneficiaries.
Court: United States District Court Northern District of Indiana, South Bend Division
Case: Seth D. Harris, Acting Secretary of Labor, Successor to Hilda L. Solis, United States Department of Labor v. Hostetler Door Inc., Glen Hostetler and Julie Hostetler, and Hostetler Door Inc. 401(k) Plan.
Docket Number: 3:11-cv-00496-CAN
For help with problems related to private sector retirement and health plans, employers and workers can reach EBSA 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.