Lawsuit Over Pension Mismanagement Settled for $125,000

May 10, 2006 ( - The former owner of an financial services firm accused of mismanaging pension funds will pay more than $125,000 in restitution to plan participants in Maine to settle a lawsuit brought by the US Department of Labor.

The Associated Press reported that Robert Montgomery, through Payroll Benefits, Inc., managed 18 pension plans between 1998 and 2001.

The lawsuit by the US Department of Labor claimed that Montgomery was delinquent in forwarding plan contributions to designated investment funds, kept inaccurate records and delivered delinquent and inaccurate benefit statements to the plans’ participants, the wire service reported.

Montgomery must pay more than $125,000 in restitution to employees at companies in Auburn, Lewiston, Turner, Greene, Sabattus, Scarborough, Waterville, Damariscotta and Brunswick.

The judgment also resulted in banning Montgomery for five years from working as a fiduciary to any employee benefit plan that falls under the federal Employee Retirement Income Security Act (ERISA), according to the AP.