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Judge orders fiduciary to restore $53,287 to Industrial Surfacing Corp. 401(k) Plan in Urbana, Illinois
Date of Action: October 10, 2014
Type of Action: Default Judgment
Name of Defendant: Rodger D. Ferguson, Industrial Surfacing Corp., Industrial Surfacing Corp 401(k) Plan
Allegations: During the period from May 28, 2010, through April 8, 2011, Rodger D. Ferguson, in his capacity as fiduciary, failed to remit $47,636.44 in employee salary reduction contributions to the Industrial Surfacing Corp. 401(k) Plan, resulting in lost opportunity costs of $5,650.61. These actions allowed Industrial Surfacing Corp. 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.
Resolution: The Default Judgment orders Ferguson and Industrial Surface Corp. to restore to the Industrial Surfacing Corp. 401(k) Plan all fiduciary breaches for which they are responsible including the unremitted employee contributions and lost opportunity cost. The defendants will also be permanently enjoined from acting as fiduciaries or service providers to any ERISA-covered employee benefit plan in the future. An independent fiduciary has been appointed by the court to administer the plan and distribute its assets to eligible participants.
Court: U.S. District Court for the Central District of Illinois, Urbana, Ill.
Docket Number: 2:13-cv-02201
Employers and workers can reach Employee Benefits Security Administration toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans. Additional information can be found at http://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.