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US Labor Department obtains default judgment to restore more than $200K to 401(k) plan of defunct Maryland medical research company
Date of Action: Aug. 29, 2016
Type of Action: Default judgment
Name(s) of Defendant(s): Global Research Services LLC, Vice President of Finance Julie E. Garrett, and Global Research Services LLC 401(k) Plan
Allegations: An investigation by the U.S. Labor Department’s Employee Benefits Security Administration found that Global Research Services, a defunct Rockville, Maryland-based medical research company, established a 401(k) plan for its employees in 2007.
Between 2010 and 2013, the company and plan trustee Julie E. Garrett failed to remit elective employee contributions to the plan in a timely manner, and did not pay interest on the untimely contributions. GRS also failed to remit employer contributions to the plan from 2010 to 2012.
Resolution: The court order requires each of the defendants, jointly and severally, to restore all plan losses caused by their fiduciary breaches, removes the defendants as plan fiduciaries, and permanently enjoins them from serving as fiduciaries to any plan covered by the Employee Retirement Income Security Act of 1974.
Court: United States District Court for the District of Maryland
Docket Number: 1:16-cv-00229-ELH