Date of Action: July 10, 2015
Type of Action: Default Judgment
Names of Defendant: Applied Technology Systems, Inc. and Clark V. Hayes, individually and as fiduciaries to the Applied Technology Systems, Inc. Retirement Plan, and the Applied Technology Systems, Inc. Retirement Plan
Allegations: A complaint was filed against Hayes, the Applied Technology Systems Inc. and the Applied Technology Systems, Inc. Retirement Plan on Jan. 29, 2014, in the United States District Court, Northern District of Ohio with respect to Hayes’ failure to segregate and remit $12,216.08 in employee contributions and $1,607.21 in participant loan repayments.
Resolution: A Default Judgment was entered by the court on July 10, 2015, that orders Hayes and the company to restore $17,167.69 to the Plan, which represents the employee contributions, participant loan repayments, and lost opportunity costs which accrued as a result of the failure to remit employee contributions and participant loan repayments to the Plan from Jan. 21, 2011, through Feb. 25, 2011. The judgment also removes Hayes and the company as fiduciaries of the Plan and appoints Rea and Associates Inc. as independent fiduciary to manage and terminate the Plan. Finally, the judgment bars Hayes and the company from serving as a fiduciary or service provider to any ERISA Title I covered employee benefit plan in the future.
Court: United States District Court for the Northern District of Ohio
Docket Number: 5:2014-cv-00193
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