Date of Action: July 22, 2014
Type of Action: Consent Order and Judgment
Name of Defendant: Stephen Schneider, fiduciary to the Pinnacle Telemarketing Inc. 401(k) Plan in Kaiser and Lebanon, Mo.
Allegations: On Dec. 6, 2013, the U.S. Department of Labor filed suit against Stephen Schneider in the U.S. District Court for the Western District of Missouri. The suit alleged that from Oct. 1, 2008, through Aug. 31, 2009, Schneider, who was sole owner of Pinnacle Telemarketing Inc., withheld at least $7,456.94 from employees’ pay for contributions to the Pinnacle Telemarketing Inc. 401(k) Plan and $478.59 in loan repayments, but failed to timely remit these amounts to the Plan. As a result of Schneider’s failure to timely forward such withheld employee contributions, the Plan and its Participants suffered lost earnings on the contributions.
Resolution: Under the terms of the consent order and judgment, Schneider will pay $11,881.18 to an interest-bearing trust account established in the name of the Pinnacle Telemarketing Inc. 401(k) Plan. The $11,881.18 represents $7,456.94 in employee contributions, $478.59 in loan repayments, and $3,945.65 in lost earnings owed to the Plan and restores all losses resulting from his failure to forward employee contributions and loan repayments, including lost earnings on these amounts.
The judgment also permanently enjoins Schneider from acting in any fiduciary capacity for an employee benefit plan subject to the Employment Retirement Income Security Act.
Court: U.S. District Court for the Western District of Missouri
Docket Number: 13-cv-4255
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.