EBSA News Release: [12/08/2011]
Contact Name: Michael Shimizu
Phone Number: (206) 553-7620
Release Number: 11-1688-DEN
US Department of Labor files suit against Cheyenne, Wyo., company and owner for failing to deposit employee contributions into pension plan
KANSAS CITY, Mo. The U.S. Department of Labor has filed a lawsuit against Nationwide Supply Inc., operating as Business Outfitters in Cheyenne, Wyo., and Guy Baldino, the company's president and owner, for failing to deposit employee contributions into the company's pension plan in violation of the Employee Retirement Income Security Act. The suit follows an investigation by the Kansas City Regional Office of the department's Employee Benefits Security Administration.
"The money withheld from these workers for their retirement savings belongs to them and may not be diverted or used for other purposes," said James Purcell, EBSA's regional director in Kansas City. "We are seeking the recovery of all of these employees' hard-earned money so it can support them in their later years."
The suit alleges that the defendants withheld employee payroll contributions totaling $19,903 between Feb. 8, 2008, and Dec. 31, 2009, which were not timely deposited into the Nationwide Supply Inc. Savings Incentive Match Plan Individual Retirement Account.
Also, the defendants retained additional employee contributions totaling $17,285 between May 2, 2008, and Dec. 31, 2009, that were not remitted to the plan. During the course of EBSA's investigation, the defendants repaid $6,748 of that sum. However, more than $10,000 is still owed to six plan participants.
The Labor Department is seeking repayment of all losses, plus interest, to the plan. The complaint was filed in the U.S. District Court for the District of Wyoming in Cheyenne by the department's Office of the Solicitor. Employers and workers can reach EBSA's Kansas City office at 816-285-1800 or toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans.
EBSA protects the retirement, health and other workplace-related benefits of America's workers and retirees, and their families. The agency oversees approximately 708,000 private sector retirement plans, 2.8 million health plans and a similar number of other benefit plans that cover more than 150 million Americans. Additional information can be found at http://www.dol.gov/ebsa.
Solis v. Baldino, et al
Civil Action File Number: 11-CV-362-F