Date of Action: Oct. 1, 2013
Type of Action: Complaint
Names of Defendants: Welding Unlimited Inc.; David R. Shields; Welding Unlimited Inc. 401(k) Profit Sharing Plan
Allegations: Welding Unlimited Inc. and David R. Shields, in their capacities as fiduciaries to the Welding Unlimited Inc. 401(k) Profit Sharing Plan, violated the Employee Retirement Income Security Act by failing to remit to the plan $38,941 in employee contributions that were withheld from employees’ paychecks between Jan. 1, 2008 and Dec. 31, 2008. The department alleges the unremitted funds were used to pay the company’s financial obligations. As of Oct. 15, 2013, the plan had 18 participants and no remaining assets.
Resolution: The department is seeking full restoration of the unremitted employee contributions to the plan, plus lost interest, as well as injunctive relief permanently enjoining Welding Unlimited Inc. and Shields from violating any provisions of Title I of ERISA. The department also seeks to bar Shields from serving as a fiduciary or service provider to any ERISA plans and the appointment of an independent fiduciary at Shields’ expense to distribute the restored assets to the participants and beneficiaries and to terminate the plan.
Court: U.S. District Court for the Central District of California
Docket Number: 2:13-cv-07261-GW-JC
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