August 8, 2014 (PLANSPONSOR.com) – Charles David Snyder, fiduciary to the Cleveland-based Attevo 401(k) retirement plan, has been ordered by a judge to restore $143,481.42 to the plan.
Judge Christopher A. Boyko of the U.S. District Court for the
Northern District of Ohio issued a consent
judgment and order requiring Snyder to pay. The judgment resolves a Department
of Labor (DOL) lawsuit, Perez v. Snyder et al. (Civil Action No. 1:13-cv-02474-CAB),
which alleged the plan’s fiduciaries violated the Employee Retirement Income
Security Act (ERISA) when they failed to remit participant contributions and
loan repayments withheld from paychecks to the retirement plan.
As per the consent judgment and order, Snyder will begin making monthly payments to the plan on September 15, starting with an
initial $50,000 payment. After that, he will make monthly payments of $6,000, concluding
with a final payment of $27,481.42 on September 15, 2015. The judgment also
requires Snyder to provide the DOL’s Employee Benefits Security Administration
(EBSA) with proof that each payment has been made no later than 10 days after
each due date.
An EBSA investigation determined that Cirric Inc.—the
successor to Averrock Inc. and Attevo Inc.—and its sister company, Ruralogic
Inc., were all fiduciaries to the Attevo 401(k) retirement plan. So were two of
the companies’ owners, Snyder and Joseph Burmester. All were named as
defendants in the suit and found by the court to be jointly liable for losses
to the plan.
According to the judgment, if Snyder does not make his
payments to the plan in a timely manner, the judgment will become immediately
due from all defendants.
The judgment also permanently bars Snyder and Burmester from
serving as a fiduciary or service provider to any ERISA-covered employee
benefit plan, and appoints an independent fiduciary to administer and eventually
terminate the plan.
As of August 13, 2013, the plan had 24 participants and
$379,424.20 in assets.
The consent judgment and order can
be viewed here.