US Department of Labor recovers $14K for Illinois retirement plan after investigation finds company owner failed to forward contributions
HILLSIDE, IL – After a Hillside business owner failed to forward $10,184 in employee retirement contributions to his company’s retirement plan as required, a federal court barred him from serving as a fiduciary in the future for violating the Employee Retirement Income Security Act.
U.S. District Court Judge Martha Pacold entered a consent judgment today following a U.S. Department of Labor Employee Benefits Security Administration investigation. The investigation determined that from January 2017 to August 2019, Rodney C. Scott – owner and president of the now defunct RCS & Associates LTD of Hillside – failed to forward employee contributions to the RCS & Associates LTD 401(k) Plan. Scott is the plan’s sole fiduciary.
Prior to the court’s action, Scott restored $14,536 to the plan, including $10,184 in unremitted employee contributions and $4,352 in lost earnings. The company filed for bankruptcy in January 2020. In addition to its fiduciary bar, the court ordered Scott to pay an $893 penalty. The consent judgment also ordered Scott to terminate the plan and pay all remaining assets to participants.
“Employers who fail to fulfill their responsibilities as fiduciaries of their workers’ retirement savings plans compromise the fund’s growth potential and cost workers returns on their investment,” said Employee Benefits Security Administration Regional Director Jeffrey Monhart in Chicago. “The U.S. Department of Labor’s Employee Benefits Security Administration is committed to ensuring the integrity of employee benefit programs and holding those who violate the law accountable.”
Walsh v. Rodney C. Scott, RCS & Associates LTD., and RCS & Associates LTD. 401(k) PLAN
Civil Action No. 20-cv-06638