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Department of Labor files complaint to recover loss to Cleveland-based Applied Technology Systems Inc. Retirement Plan
Date of Action: Jan. 29, 2014
Type of Action: Complaint
Names of Defendant: Applied Technology Systems Inc.; Clark V. Hayes; and the Applied Technology Systems Inc. Retirement Plan located in Cleveland, Ohio
Allegations: As fiduciaries of the Plan, defendants Applied Technology Systems Inc. and Clark V. Hayes failed to segregate and remit employee contributions and loan repayments and failed to administer the Plan causing six former Applied Technology Systems, Inc. employees to be unable to obtain distributions from their individual accounts since March 2011.
The Plan had unremitted participant contributions totaling $12,216.08 and unremitted participant loan repayments totaling $1,607.21.
Resolution: The Department of Labor is asking the court to permanently enjoin the defendants from violating the Employee Retirement Income Security Act and from serving as fiduciaries or service providers to any ERISA-covered employee benefit plan; ordering the defendants to make good to the Plan any losses, including lost opportunity costs; and appoint an independent fiduciary to oversee the Plan after the fiduciaries are removed.
Court: United States District Court for the Northern District of Ohio, Cleveland, Ohio.
Docket Number: 5:14-cv-00193
Employers and workers can reach EBSA toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans. Additional information 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.