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Judge orders fiduciary to restore funds to Air Gage Co. 401(k) Plan & Air Gage Co. Health Care Plan in Livonia, Mich.
Date of Action: June 10, 2013
Type of Action: Consent judgment and order
Name of Defendant: Thomas Fernandes, individually and as a fiduciary to the Air Gage Company 401(k) Plan and Air Gage Company Health Care Plan
Resolution: Fernandes, in his capacity as a fiduciary to the Air Gage Company 401(k) Plan and Air Gage Company Health Care Plan, is liable to the plans for $11,143.21.
Fernandes will pay $7,710.85 to the Air Gage Company 401(k) Plan which represents lost opportunity costs for late contributions and loan repayments from employees of Air Gage Company, Reska Spline Products Inc. and Airtronics Gage and Machine Company for the period Jan. 3, 2008, through March 8, 2013. Fernandez failed to forward the contributions in a timely manner.
Fernandes is also liable to the Air Gage Company Health Care Plan for $3,432.36, which represents Air Gage Company employee health premiums which were not forwarded to the health plan and interest calculated through March 8, 2013.
Resolution: Fernandes will pay the amounts owed directly to the former participants and beneficiaries of the plans and is permanently barred from serving as a fiduciary or service provider to any Employee Retirement Income Security Act covered employee benefit plan in the future.
Court: United States District Court for the Eastern District of Michigan
Docket Number: 2:13-cv-10079
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.