News Brief

Please note:  As of January 20, 2017, information in some news releases may be out of date or not reflect current policies.

US Department of Labor files suit to recover $39,000 in employee contributions to the Welding Unlimited Inc. 401(k) Profit Sharing Plan in Agua Dulce, Calif.

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

U.S. Department of Labor news 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.

EBSA News Brief: 
11/01/2013
Release Number: 
13-2125-SAN