By Pension and Benefits Editorial Staff
The U.S. Department of Labor has obtained a consent order and judgment to remove plan fiduciaries - Attila E. Nagy and Cynthia Nagy - from the Assembly Specialty Products Inc. 401(k) Plan after an investigation by the department's Employee Benefits Security Administration (EBSA) found that the fiduciaries violated the Employee Retirement Income Security Act (ERISA).
Investigators determined that the Nagys withheld and failed to remit $241,692 in employee voluntary payroll contributions from January 2011 to July 2017 to the Cleveland, Ohio-based Assembly Specialty Products Inc. 401(k) Plan. Investigators also determined the Nagys withheld $20,867 in employee voluntary payroll contributions from Aug. 4, 2017, to March 2, 2018, and failed to remit the funds, in a timely and consistent manner. The Nagys restored the total amount of unremitted funds - $241,692 - and paid lost interest to participants of the Assembly Specialty Products Inc. 401(k) Plan between Aug. 2, 2017, and Nov. 15, 2018.
Under terms of the consent order and judgment entered in U.S. District Court for the Northern District of Ohio, Eastern Division in Cleveland, the court order permanently enjoins the Nagys from acting as service providers or fiduciaries to any ERISA-covered plan in the future and requires them to terminate the Assembly Specialty Products Inc. 401(k) Plan within 90 days.
“The consent order and judgment demonstrate that fiduciaries that fail to work solely in the interest of plans and participants will be held to account to the law,” said Employee Benefits Security Administration Regional Director L. Joe Rivers, in Cincinnati, Ohio. “Fiduciaries who need assistance or have questions on proper management of employee benefit plans may contact the Employee Benefits Security Administration for guidance and assistance.”
EBSA's Cincinnati office investigated the case.
ERISA requires fiduciaries operate employee benefit plans solely in the interest of participants and beneficiaries. Employers and workers can reach EBSA toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans. Additional information can be found at https://www.dol.gov/agencies/ebsa.
Source: DOL News Release, No. 20-702-CHI.
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