Please note: As of January 20, 2017, information in some news releases may be out of date or not reflect current policies.
US Department of Labor obtains default judgments restoring losses to employee retirement plan of Madison-based IDS Sales & Engineering Inc.
Type of Action: Default Judgment
Names of Defendant: David Stratton, IDS Sales & Engineering, Inc., IDS Sales & Engineering, Inc. Retirement Savings Plan
Allegations: During the time period of Dec. 1, 2010, through Feb. 28, 2011, the defendants, as fiduciaries of the company's retirement savings plan, failed to remit $14,435.61 in participant retirement contributions, resulting in lost opportunity costs of $4,679.33. In addition, during the time period of Feb. 2, 2010, through Nov. 24, 2010, the defendants withheld participant contributions totaling $31,523.42 and loan repayments totaling $167.40 from participants’ pay and failed to remit such amounts to the Plan in a timely manner. These actions allowed IDS to retain the participant contributions in its general assets and use them to pay for corporate expenses, in violation of the Employee Retirement Income Security Act.
Resolution: On July 14, 2015, the district court entered judgment against defendants Stratton and the Plan in the amount of $19,114.94. In addition, Stratton was ordered to correct the prohibited transactions in which he engaged and was permanently barred from serving as a fiduciary to an employee benefit plan covered under the Employee Retirement Income Security Act except to the extent necessary to carry out the judgment.
Previously, on April 28, 2015, IDS was ordered to restore $19,114.94 to the IDS Sales & Engineering, Inc. Retirement Savings Plan. Defendant IDS was also permanently enjoined from acting as fiduciary or service provider to any ERISA-covered employee benefit plan.
Court: United States District Court for the Western District of Wisconsin
Docket Number: 3:14-cv-00577
Employers and workers can reach EBSA’s Chicago office at 312-353-0900 or 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.
U.S. Department of Labor news materials are accessible at www.dol.gov. The department’s Reasonable Accommodation Resource Center converts departmental information and documents into alternative formats, which include Braille and large print. For alternative format requests, please contact the department at (202) 693-7828 (voice) or (800) 877-8339 (federal relay).