Federal court orders 401(k) plan fiduciaries to make immediate payments to restore $11K software company employees’ retirement fund
Date of Action: July 20, 2023
Type of Action: Order requiring immediate compliance
Company/Trustees: Owen Software Development Co. Ltd.
Adeboyejo Oni, CEO and Trustee
Babatunde Ogunnaike, Chief Financial Officer and Trustee
Background: Judge Paula Xinis of the U.S. District Court for the District in Maryland has ordered Babatunde Ogunnaike and Adeboyejo Oni, fiduciaries of the Owen Software Development Co. Ltd 401(k) plan, to make immediate payments after they failed to comply with a March 2023 consent judgment obtained by the U.S. Department of Labor. The judgment required them to restore $11,130 in missing contributions, interest and penalties to the plan. If Ogunnaike and Oni fail to comply with the order, the court may find them in civil contempt unless the employers show good cause.
In April 2022, the department filed suit after an investigation by its Employee Benefits Security Administration determined the Rockville, Maryland company and other plan fiduciaries did not make certain that employee contributions were forwarded to the plan in a timely manner between 2017 and 2018. Senior trial attorneys Alejandro Herrera and Elizabeth Kuschel litigated the action on the department’s behalf.
Resolution: The defendants are required to restore the full amount to the 401(k) plan by Sept. 18, 2023.
Quote: “Failing to forward required contributions to employee retirement plans in a timely manner violates employees’ trust and denies workers the opportunity to earn interest on their investments and prepare for their future,” said Acting Employee Benefit Security Administration Regional Director Norman Jackson in Philadelphia.
Employers and workers can reach EBSA toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans. Learn more about EBSA.