Get more! Sign up for PLANSPONSOR newsletters.
Compliance November 2, 2010
DoL Sues Defunct Landscaper Over Diverted Plan Assets
November 2, 2010 (PLANSPONSOR.com) – The U.S. Department of Labor (DoL) has sued the owner of a defunct Rhineland, Missouri, landscaping company for allegedly paying operating expenses using employee contributions to the company’s savings incentive match plan for employees.
Reported by Fred Schneyer
A DoL news release said Lensing Earthworks was owned and operated by Brian Lensing until it ceased operations in early 2006.
The Labor Department’s lawsuit alleges that Lensing, while serving as the company’s president, violated the Employee Retirement Income Security Act (ERISA) by allegedly retaining participant contributions intended for the plan during 2005 and 2006.
The suit asks the court to require Lensing to restore more than $7,600 in contributions that he failed to remit to the plan plus $2,400 in lost earnings.