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US Labor Department files suit to recover more than $15,000 for participants in SLP Machine Simple IRA Plan in Ham Lake, Minn.
Date of Action: July 22, 2014
Type of Action: Complaint
Names of Defendants: Gregory Fletcher, SLP Machine Simple IRA Plan.
Allegations: During the period from July 22, 2008 through April 12, 2010, Gregory Fletcher, in his capacity as president of SLP Machine Inc. and fiduciary for the SLP Machine Simple IRA Plan failed to ensure that contributions withheld from employees’ pay were remitted to the SLP Machine Simple IRA Plan in a timely manner. The failure to timely remit contributions resulted in lost opportunity costs of $915. Additionally, from April 16, 2010, to Oct. 11, 2011, Fletcher failed to ensure that $10,818.69 in employee salary reduction contributions were remitted to the SLP Machine Simple IRA Plan. The failure to remit these contributions resulted in lost opportunity costs of $3,539. These actions allowed SLP Machine Inc. to retain the employee contributions in its general assets and use them to pay for corporate expenses, in violation of the Employee Retirement Income Security Act.
As of Dec. 31, 2010, the Plan had six participants.
Resolution: The lawsuit asks for a court order requiring Fletcher to restore to the SLP Machine Simple IRA Plan all losses caused by his fiduciary breaches including lost opportunity costs and to enjoin Fletcher from serving as a fiduciary or service-provider to any ERISA-covered plan in the future.
Court: United States District Court for the District of Minnesota
Docket Number: 0:14-cv-02966
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.