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US Department of Labor Files suit to restore nearly $15,000 in losses to employee retirement plan of Madison-based IDS Sales & Engineering Inc.
Employee Retirement Plan of Madison-based IDS Sales & Engineering Inc.
Date of Action: Feb. 12, 2014
Type of Action: Complaint, filed in the U.S. District Court for the Western District of Wisconsin, Madison
Names of Defendant: David Stratton, IDS Sales & Engineering Inc., IDS Sales & Engineering Inc. Retirement Savings Plan
Allegations: The U.S. Department of Labor has filed suit against David Stratton, the former president and sole owner of IDS Sales & Engineering Inc., IDS Sales & Engineering Inc., and the IDS Sales & Engineering Inc. Retirement Savings Plan, in an effort to recover $14,435.61 in unremitted participant retirement contributions intended for the IDS Sales & Engineering Inc. Retirement Savings Plan. During February 2011, IDS ceased business operations, but has continued to remain as an active corporation according to records of the Wisconsin Secretary of State. The company is located in Madison, Wis.
An investigation by the Labor Department's Employee Benefits Security Administration revealed that the defendants, as fiduciaries of the company's retirement savings plan, failed to forward participant retirement contributions from Dec. 1, 2010, through Feb. 28, 2011. In addition, during the period from Feb. 2, 2010, through Nov. 24, 2010, Stratton and IDS withheld participant contributions totaling $31,523.42, and loan repayments totaling $167.40, from participants’ pay and failed to remit such amounts to the Plan in a timely manner.
The Department's lawsuit alleges that Stratton and IDS violated the Employee Retirement Income Security Act by retaining the contributions in the company's general account and using them for non-plan purposes. As of June 30, 2013, the Plan had five participants and assets totaling $149,889.66.
Resolution: The Labor Department seeks a court order requiring the restoration of all plan losses and barring Stratton and IDS from serving as fiduciaries or service providers to any employee benefit plan. The Labor Department also seeks to have an independent fiduciary appointed to distribute the plan's remaining assets to the participants.
Court: U.S. District Court for the Western District of Wisconsin, Madison, Wis.
Docket Number: 3:14-cv-00095
Employers and workers can reach EBSA’s Chicago office at 312-353-0900 or toll-free at 866-444-3272 for help with problems relating 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.