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News Brief

Department of Labor files complaint to recover more than $29K in losses to the Weinhagen Tire Co. Inc. 401(k) Plan

Date of Action: Sept. 27, 2016

Type of Action:  Filing of Complaint

Name(s) of Defendant: Michael E. Weinhagen, Weinhagen Tire Co. Inc., Weinhagen Tire Co. Inc. 401(k) Plan

Allegations: Michael E. Weinhagen is the sole owner and president of St. Paul, Minnesota-based Weinhagen Tire Co. and the fiduciary to the Weinhagen Tire Co. Inc. 401(k) Plan. 

An investigation by the U.S. Department of Labor’s Employee Benefits Security Administration found from at least Feb. 1. 2010, to May 27, 2015, Weinhagen and the company withheld $35,363.86 from employee’s pay for voluntary contributions to the Weinhagen Tire Co. Inc. 401(k) Plan. During that same period, Weinhagen and the company retained approximately $29,058 of those contributions in the company’s corporate bank account and used them for general operating expenses, in violation of the Employee Retirement Income Security Act.

Resolution: The complaint asks the court to:

  • Order Weinhagen and Weinhagen Tire Co. to restore to the plan all losses, including lost opportunity costs, resulting from fiduciary breaches for which they are liable and to pay reasonable fees and expenses incurred by the independent fiduciary in administering the plan.
  • Remove the defendants from their positions as fiduciary and plan administrator to the Weinhagen Tire Co, 401(k) Plan.
  • Enjoin the defendants from serving as a fiduciary or service provider to any ERISA-covered plan in the future.
  • Appoint an independent fiduciary to administer the plan.

Court: United States District Court for the District of Minnesota

Docket Number: 16-cv-3245

Agency
Employee Benefits Security Administration
Date
September 28, 2016
Release Number
16-1951-CHI
Contact: Scott Allen
Phone Number
Contact: Rhonda Burke
Phone Number