Under a consent judgment resolving a U.S. Department of Labor lawsuit, a marketing and communications company from New York has been ordered to repay $1.5 million to the company's pension plan.
The suit resulted from an investigation by the Labor Department's Employee Benefits Security Administration's New York Regional Office. DOL sued Guild Concepts Ltd., of White Plains, and its president, alleging violations of the Employee Retirement Income Security Act (ERISA). According to the suit, the company president served as a trustee to the company's Employee Savings Plan and was responsible for the proper management of the plan's assets.
A co-trustee, who was also controller of Guild Concepts Ltd., allegedly failed to remit more than $200,000 in employee contributions to the plan and transferred more than $996,000 in plan assets to the company's account. According to the suit, the company president failed to monitor and prevent these acts while the company knowingly received plan assets. At the time the consent decree was announced, the co-trustee had already pled guilty to embezzlement and is now serving 57 months in prison.
"The department's legal actions will restore the pension plan's assets that these workers and their families have been counting on for their retirement," said U.S. Secretary of Labor Elaine L. Chao in a DOL press release.