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Labor Department obtains consent judgment securing the restoration of nearly $71,000 to Wilmington, Del., retirement plan
Date of Action: Sept. 4, 2013
Name(s) of Defendants: Progressive Services Inc., Michael Hirst and Peg Hirst
Allegations: The department filed a complaint against Wilmington, Del.-based Progressive Services Inc., and its officers Michael and Peg Hirst, on Aug. 21, 2013, alleging that from January 2009 through December 2011, the defendants failed to deposit $53,809 in elective employee contributions and loan repayments to the Progressive Services, Inc. 401(k) Plan. In addition, the department found that the defendants failed to contribute $11,346 in mandatory employer safe harbor contributions to the plan during the same time period.
Resolution: In a consent judgment resolving the department’s complaint, the defendants agreed to restore $70,735 to the plan. This amount includes an additional $5,579 in interest that was also awarded to the plan as restitution. The defendants were assessed a mandatory penalty of $14,147 and agreed not to engage in this practice in the future.
Court: United States District Court for the District of Delaware
Docket Number: 1:13-cv-01466-UNA
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.