US Labor Department obtains judgment ordering Manassas, Va., company to restore more than $31,000 to 401(k) plan

Date of Action: Jan. 26, 2015

Type of Action: Consent Judgment

Name(s) of Defendant(s): Gregory Ridge, Ridge and Long Limited Co., and Ridge and Long Limited Company 401(k) Profit Sharing Plan and Trust

Allegations: Based on an investigation conducted by the U.S. Department of Labor’s Employee Benefits Security Administration, on July 29, 2014, the Secretary of Labor filed a complaint alleging the following:

Gregory Ridge was the president and sole owner of the Ridge and Long Limited Co. In 2003, Ridge and the company established the Ridge and Long Limited Co. 401(k) Profit Sharing Plan and Trust for their employees. Ridge and the company were plan fiduciaries and responsible for making decisions concerning the remittance of elective employee contributions to the plan.

Between Jan. 2, 2009, and Sept. 9, 2011, Ridge and the company failed to ensure that elective employee contributions were remitted to the plan. Instead, these employee monies were commingled with the general assets of the company.

Resolution: The consent judgment ordered Ridge to restore $31,234.13 to the plan as restitution and $7,932.50 to the plan for the costs and expenses of an independent fiduciary, totaling $39,166.63. This must be paid by Ridge from his personal assets within 60 days of the consent judgment date.

The court also appointed M. Larry Lefoldt, C.P.A. of Ridgeland, Miss.,-based firm Lefoldt and Co., P.A., as an independent fiduciary to administer and terminate the plan, and to use any of Ridge’s individual plan account balance to offset against the plan’s losses, including the costs of an independent fiduciary. Further, the court permanently enjoined Ridge and the company from serving as fiduciaries to this plan or any other employee benefit plan covered under the Employee Retirement Income Security Act.

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

Docket Number: 1:14-cv-00964-CMH-IDD

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