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News Brief

US Labor Department sues metal and wood fabrication company in Reading, Pennsylvania, to restore employee contributions to retirement plan

Date of Action: Oct. 29, 2014

Name(s) of Defendant: David Braunsberg, Quality Control Pattern & Model Inc. and Quality Control Pattern & Model Inc. SIMPLE IRA

Allegations: Based on an investigation conducted by the U.S. Department of Labor’s Employee Benefits Security Administration, the Secretary of Labor filed a complaint alleging the following:

From July 2008 through July 2011, plan fiduciaries, Braunsberg and the company, failed to ensure discretionary employee contributions to the plan were remitted, and failed to remit mandatory employer contributions to the plan. Instead, employee monies were commingled with the general assets of the company.

Resolution: The department is asking the court to direct the defendants to restore all losses plus interest to the plan, and permanently enjoin the company and Braunsberg from serving as fiduciaries or service providers to any plan covered by the Employee Retirement Income Security Act of 1974. 

Court: United States District Court for the Eastern District of Pennsylvania

Docket Number: 5:14-cv-06185-EGS

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Employee Benefits Security Administration
October 31, 2014
Release Number
EBSA 14-088