Court Orders Payment of Employee Benefit Plan Funds In Southern California After Fiduciaries Default on Settlement Agreement
LOS ANGELES, CA – The U.S. District Court for the Central District of California has entered a consent judgment ordering Information Networking Company Inc., and its president John Benjamin Riddle, to restore $47,408 to the company’s employee benefit plan.
The judgment resolves a January 2018 lawsuit in which the U.S. Department of Labor alleged the defendants failed to remit employee contributions, collect matching employer contributions, and defaulted on a prior settlement agreement with the Department to restore funds owed to the plan.
“Plan fiduciaries cannot use employees’ retirement assets for the benefit of their businesses or themselves,” said Employee Benefits Security Administration Los Angeles Regional Director Crisanta Johnson. “The Department will continue to aggressively pursue fiduciaries who do not comply with the terms of prior formal agreements, as illustrated in this case.”
The Regional Solicitor’s Office litigated this case on the Department’s behalf.
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 https://www.dol.gov/agencies/ebsa.