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US Labor Department obtains judgment to recover more than $124,000 in missing retirement contributions from Denver area firm
Date of Action: Dec. 3, 2015
Type of Action: Consent Judgment & Order
Name(s) of Defendant: Stewart Environmental Consultants LLC in Fort Collins, Colorado, and owner David Stewart
Allegations: An investigation by the U.S. Department of Labor's Employment Benefits Security Administration revealed that from January 2012 to October 2015 employee wages, intended for contribution to the retirement plan, were withheld from employees' pay but were not timely forwarded in violation of the Employee Retirement Income Security Act of 1974. As a result, a complaint was filed on July 16, 2015 seeking an order requiring the employer and owner to restore all losses to the retirement plan, with interest.
Resolution: A consent judgment and order were obtained requiring the restoration of all retirement plan losses, including missing contributions from employees' wages and lost earnings/interest owed to the plan. Specifically, Stewart agreed to restore $107,242 in employee contributions and loan repayments along with $16,895 in lost opportunity costs.
Court: U.S. District of Colorado
Civil Action Number: 1:15cv01509
Quote: "The employer had a duty to manage and protect the employees' benefit plans and their assets, yet they failed to do so," said James Purcell, director of EBSA's Kansas City Regional Office, which investigated this case.
Information: Employers and workers can reach EBSA's Kansas City office at 816-281-1800 or toll-free at 866-444-3272 for help with problems relating to private-sector retirement and health plans.