Harris v. Nohl Crest Homes Corp. involving employee stock plan in Florida

Date of Action: May 22, 2013

Type of Action: Complaint

Name(s) of Defendant(s): Nohl Crest Homes Corp., Kenneth R. Emery, Peter G. Timba, and Nohl Crest Homes Corp. Employee Stock Ownership plan

Allegations: Defendants caused or allowed a transfer of $650,000 in plan assets to a company bank account to be used for company purposes and obligations rather than for the exclusive benefit of the plan and its participants and beneficiaries. Defendants have failed to distribute the plan’s remaining assets to participants and beneficiaries, in accordance to the plan document. Defendants have failed to ensure that the plan was adequately covered by a fidelity bond. Defendants have failed to monitor, control, or attempt to rectify the acts of one another with respect to the plan.

Resolution: The department is asking the court to order the defendants to restore to the plan all losses, including interest or lost opportunity costs, which occurred as a result of the breaches of fiduciary obligations, order that the plan set off the individual account of defendants Emery and Tibma against the losses, appoint a successor fiduciary or administrator, at defendants’ expense, permanently enjoin defendants from serving as fiduciary, administrator, officer, trustee, custodian, agent employee, representative, or having control over the assets of any employee benefit plan subject to Employee Retirement Income Security Act, enjoin defendants from engaging in any further action in violation of Title I of ERISA, and award plaintiff the costs of this action.

Court: Middle District of Florida, Tampa Division

Docket Number: 8:13-cv-01360-MSS-AEP

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