News Release

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Department of Labor Obtains Judgment to recover more than $28,000 to the Sister Rosalind Gefre Employee Retirement Plan in Minneapolis

Date of Action:  May 19, 2014

Type of Action:  Consent Order and Judgment

Names of Defendant: Sister Rosalind Gefre Schools and Clinics of Massage Inc., Peter Fahnlander and Larry Hanson, individually, and as fiduciaries to the Sister Rosalind Gefre Employee Retirement Plan.

Allegations: On Aug. 27, 2013, the U.S. Department of Labor filed suit against Sister Rosalind Gefre Schools and Clinics of Massage Inc., Peter Fahnlander and Larry Hanson in the U.S. District Court for the District of Minnesota.  The suit alleged that from Nov. 20, 2007, through May 10, 2008, Sister Rosalind Gefre Schools of Clinics and Massage Inc., Peter Fahnlander and Larry Hanson, in their capacity as fiduciaries to the Sister Rosalind Gefre Employee Retirement Plan, failed to ensure that employee contributions totaling $20,743.75 were remitted to the Plan.  In addition, from Jan. 1, 2007, through March 4, 2011, the defendants failed to ensure that employee contributions were timely remitted to the Plan. 

Resolution: The parties submitted a Consent Order and Judgment which was entered by the U.S. District Court for the District of Minnesota on May 19, 2014. The Consent Order and Judgment requires that Peter Fahnlander and Larry Hanson restore to the Plan all losses resulting from their failure to forward employee contributions to the Plan, including lost earnings on these amounts. 

Specifically, the Consent Order and Judgment requires that Peter Fahnlander pay $26,109.37 into the Plan representing $20,743.75 in employee contributions and $5,365.62 in related lost earnings. In addition, the Consent Order and Judgment requires that Larry Hanson pay $2,500 into the Plan representing lost earnings owed to the Plan.

The judgment also permanently enjoins Peter Fahnlander from acting in any fiduciary capacity for an employee benefit plan subject to the Employment Retirement Income Security Act.

Court: US District Court for the District of Minnesota, Minneapolis, Minn.

Docket Number: 0:13-cv-02346-DWF/FLN

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.

EBSA News Release: 
05/20/2014
Release Number: 
EBSA-CHI-14-21