Federal Court Orders Nevada Leak Detection Company to Pay Retirement Plan Participants $51,434 for Unpaid Contribution, Associated Lost Interest
SAN FRANCISCO, CA – The U.S. District Court of Nevada has ordered Sin City Investment Group Inc. – operating as American Leak Detection of Southern Nevada – and its president Leland Keith Ozawa to pay $51,434 for missing employee contributions and associated lost interest owed to non-fiduciary participants of the American Leak Detection SIMPLE IRA Plan.
The court’s action follows a U.S. Department of Labor Employee Benefits Security Administration (EBSA) investigation that alleged Sin City Investment Group Inc. and Ozawa, fiduciaries to the plan, deducted employee contributions from employees’ paychecks but failed to forward those contributions to the plan. The Department’s Office of Solicitor filed a complaint in federal court on Feb. 28, 2019.
“This case exemplifies the U.S. Department of Labor’s commitment to aggressively pursue fiduciaries who misuse their employees’ retirement savings,” said Employee Benefits Security Administration Regional Director Klaus Placke, in San Francisco, California.
The U.S. District Court has ordered the company and Ozawa to restore the $41,077 in missing contributions owed to non-fiduciary participants, to pay the plan $10,356 in additional lost opportunity costs associated with untimely contributions and to bar Ozawa permanently from serving as a fiduciary to any employee benefit plan.
ERISA requires fiduciaries operate employee benefit plans solely in the interest of participants and beneficiaries. Employers and workers can reach EBSA toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans.
EBSA’s mission is to assure the security of the retirement, health and other workplace related benefits of America's workers and their families. EBSA accomplishes this mission by developing effective regulations; assisting and educating workers, plan sponsors, fiduciaries and service providers; and vigorously enforcing the law.
The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.