News Brief

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U.S. Department of Labor files complaint to restore more than $23K in losses to Bonner & Borhart SIMPLE IRA Plan in Melrose, Minn.

Date of Action: Jan. 8, 2015

Type of Action: Complaint

Names of Defendant: John Bonner, Bonner & Borhart LLP, Bonner & Borhart LLP SIMPLE IRA Plan

Allegations: From Jan. 15, 2009, to present, John Bonner was the managing partner and sole owner of Bonner & Borhart in Melrose, Minnesota. Bonner & Borhart was the plan administrator for the Bonner & Borhart LLP SIMPLE IRA Plan.

During the period from Jan. 15, 2009, to May 12, 2014, Bonner & Borhart withheld in excess of $23,334, from employees’ pay in salary reduction contributions intended for the plan and retained the funds in the company’s general operating account.  To date the funds have not been remitted to the Bonner & Borhart LLP SIMPLE IRA Plan.

Additionally, Bonner failed to timely remit $122,127, in employee participant contributions to the SIMPLE IRA Plan during the period of Jan. 15, 2009, to May 12, 2014.

Both actions are violations of the Employee Retirement Income Security Act

Resolution: The complaint asks the court to order Bonner and the company to correct all prohibited transactions and fiduciary breaches for which they are liable and to restore all losses to the Bonner & Borhart LLP SIMPLE IRA Plan, including lost opportunity costs.  It also seeks to permanently enjoin Bonner and the company from serving as fiduciaries or service providers to any ERISA-covered employee benefit plan and remove them from any positions they now hold as fiduciaries. 

Employers and workers can reach EBSA toll-free at 866-444-3272 for help with problems relating to private-sector retirement and health plans.  Additional information can be found at www.dol.gov/ebsa.

Court: United States District Court for the District of Minnesota, Minneapolis

Docket Number: 0:15-cv-00037

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EBSA News Brief: 
01/08/2015
Contact Name: 

Scott Allen

Phone Number: 
Contact Name: 

Rhonda Burke

Phone Number: 
Release Number: 
15-03-CHI