Please note: As of January 20, 2017, information in some news releases may be out of date or not reflect current policies.
Judge bars fiduciary and orders them to restore more than $28K to SR Plastics Inc. health plan in Elberton, Georgia
Date of Action: Jan. 28, 2015
Type of Action: Consent Judgment and Order
Name of Defendants: SR Plastics Inc., SR Plastics Inc. Group Health Plan, Gary Anderson, and Daniel Fetsch
Allegations: The U.S. Department of Labor's Employee Benefits Security Administration filed a complaint on May27, 2014 against SR Plastics Inc., SR Plastics Inc. Group Health Plan, Gary Anderson, and Daniel Fetsch. The complaint alleges that the plan was a fully insured heath care plan that provided health, dental, and vision benefits to the employees of the company. Blue Cross and Blue Shield of Georgia served as the plan's insurance carrier. The premium payments to BCBSGA were funded by both employee and employer contributions and the policy was terminated Feb. 1, 2008 due to non-payment of premiums. After the insurance policy was cancelled the defendants continued to withhold employee contributions through April 2008, in the amount of $28,451. During this period of time, participants accrued $105,561 in unpaid medical claims. SR Plastics Inc. was a Georgia corporation and the plan sponsor and plan administrator. Anderson, chief executive officer, and Fetsch, chief financial officer, were fiduciaries to the plan. In April 2008, the company ceased operations. There were 76 participants whose employee contributions totaled $28,451.
Resolution: The department and the defendants have agreed to resolve all matters in controversy in their action. Specifically, Fetsch and Anderson have agreed to make restitution to the plan totaling $28,451.62. Fetsch delivered a check for $14,225.81 to his attorney, Corey Berger, on Jan. 12, 2015. Anderson will make six monthly payments of $2,370.97, totaling $14,225.81 to Berger. Berger will hold these funds in trust for the purpose of reimbursing the participants of the health plan for their losses. The reimbursement is to occur by June 20 2015, and an acknowledgement of that reimbursement is to be provided to the department by June 25, 2015.
Defendants Fetsch and Anderson are also permanently enjoined and restrained from violating the provisions of Title I of Employee Retirement Income Security Act of 1974 and are permanently barred from acting as a fiduciary, trustee, agent, or representative in any capacity to any employee benefit plan, as defined by ERISA.
Court: United States District Court for the Middle District of Georgia, Athens Division.
Docket Number: 3:14-cv-00047-CDL