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US Department of Labor obtains consent judgment ordering restoration of almost $53,000 to SIMPLE IRA plan of former Rhode Island day care business
Date of Action: Dec. 12, 2013
Type of Action: Consent Judgment and Order
Name(s) of Defendant: Counseling and Educational Consultants, doing business as Rumford Day Nursery, Inc., and Deborah Very-King
Allegations: The Rumford Day Nursery Inc. SIMPLE IRA plan was established to provide retirement benefits for employees of Counseling and Educational Consultants doing business as Rumford Day Nursery, Inc. ("RDN"), a Rumford, R.I., based business which operated day care centers in Barrington, Coventry, East Providence, North Kingston and Westerly, R.I. and in Seekonk, Mass. RDN ceased operations in December 2009. RDN was the plan's administrator and Deborah Very-King, the company's owner and chief operating officer, was the sole decision maker for the plan. In those roles, they were responsible for receiving and collecting all monies due to the plan and for properly managing the plan's assets. Beginning in 2007, the defendants failed to forward about $23,506.98, plus lost opportunity costs, in withheld employee contributions to the plan and failed to collect about $20,947.14 in employer contributions, plus lost opportunity costs, due to the plan.
Resolution: The consent judgment orders the defendants to pay $52,945.96 in principal and pre-judgment opportunity costs to the plan in monthly installments. Defendant Very-King will also provide proof of payments and other verification to the Labor Department. The judgment also permanently prohibits Very-King from serving as a fiduciary to any ERISA-covered benefit plan.
Court: U.S. District Court for the District of Rhode Island
Docket Number: 13-763—L-LDA
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.