Date of Action: April 11, 2017
Type of Action: Consent order and judgment
Names of Defendant: Michael E. Weinhagen
Weinhagen Tire Co. Inc.
Weinhagen Tire Co. Inc. 401(k) Plan
Findings: 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: Under terms of the consent judgment:
- Weinhagen and Weinhagen Tire Co. restored $4,000 to the Weinhagen Tire Co. Inc. 401(k) Plan on Sept. 22, 2016, and an additional $37,754 on Nov. 4, 2016. These actions restored to the plan all losses, including lost opportunity costs, resulting from fiduciary breaches for which they are liable.
- Weinhagen and Weinhagen Tire Co. are enjoined from violating ERISA in the future.
- Larry Cumpston, CPA, of Lawrence Cumpston & Associates is appointed as plan co-administrator, record keeper and fiduciary.
- Weinhagen and Weinhagen Tire Co. will file all delinquent Form 5500 Annual Reports for the Plan.
Court: U.S. District Court for the District of Minnesota
Docket Number: 16-cv-3245