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Yardley, Pennsylvania law firm and attorney ordered to restore $50K to 401(k) profit sharing plan following US Labor Department lawsuit
Date of Action: Feb. 8, 2016
Name(s) of Defendant(s): Richard J. Kwasny
Kwasny & Reilly P.C.
Kwasny & Reilly 401 (k) Profit Sharing Plan
Allegations: On July 22, 2014, the U.S. Department of Labor filed suit against Richard J. Kwasny, Kwasny & Reilly P.C. and Kwasny & Reilly 401(k) Profit Sharing Plan, alleging that from 2007 through 2009, Kwasny and the company failed to remit employee plan contributions on a timely basis in violation of the Employee Retirement Income Security Act.
The suit sought an order that required the defendants to restore all plan losses plus interest, permanently enjoined them from violating ERISA and appointed an independent fiduciary with the authority to administer the plan, distribute its assets and make participants whole.
Resolution: On Feb. 8, 2016, a federal judge ordered the defendants to restore $50,215 in employee contributions and interest to the plan, the removal of the defendants as fiduciaries of the plan, a permanent injunction enjoining Kwasny and company from serving as fiduciaries to any other employee benefit plans. The judge also ordered the appointment of an independent fiduciary to the plan at the expense of the defendants.
Information: Employers and workers can reach EBSA’s Philadelphia Regional Office at 215-861-5300 or toll-free at 866-444-3272 for help with problems relating to private-sector retirement and health plans.
Court: United States District Court for the Eastern District of Pennsylvania
Docket Number: 2:14-cv-04286