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U.S. Department of Labor Investigation Results in Federal Court Ordering Former 401(k) Manager to Pay Restitution
BLAIRS, VA – After an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), the U.S. District Court for the Western District of Virginia has sentenced Felix Rafael Ginorio to time served plus two years supervised release, and has ordered him to pay restitution of $87,276 for stealing from an employee benefit plan, and failing to pay federal taxes. As a result of his conviction, Ginorio is barred from serving as a fiduciary or service provider to an employee benefit plan covered by the Employee Retirement Income Security Act.
EBSA investigators found that from April 2013 to January 2014, Ginorio failed to remit $5,317 in employee contributions to the Southside Manufacturing Corp. Retirement 401(k) Savings Plan. He served as vice president of the Loyola Fund Inc. in Palm Beach, Florida. The Loyola Fund owned Southside Manufacturing, at which Ginorio was an onsite manager. Employees of Southside Manufacturing Inc. contributed to the plan via weekly payroll deduction.
Ginorio used the funds for business and personal purposes. He also failed to account for, and pay approximately $81,959 in payroll taxes to the IRS that were withheld by the company in the third and fourth quarters of 2013.
“Prosecuting those who misuse funds from employee benefit plans is a vital aspect of this agency’s mission to protect the rights of America’s workers,” said Michael Schloss, EBSA Regional Director in Philadelphia. “EBSA will continue to aggressively investigate such crimes on behalf of workers nationwide.”
EBSA’s Washington District Office, the Department of Labor’s Office of Inspector General, the IRS Criminal Investigation Division, and the Pittsylvania County Virginia Sheriff’s Office investigated the case. The U.S. Attorney’s Office for the Western District of Virginia prosecuted the case.
Employers and workers can reach EBSA toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans. Additional information can be found at http://www.dol.gov/ebsa.
Case name: United States v. Felix Rafael Ginorio
Docket number: 4:17-cr-00007