The U.S. Department of Labor has filed a lawsuit against Nationwide Supply Inc., under operation as Business Outfitters in Cheyenne, Wyo., as well as Guy Baldino, the company's president and owner, for not depositing employee contributions into the company's pension plan, which violates the Employee Retirement Income Security Act.
This suit comes after an investigation by the Kansas City Regional Office of the department's Employee Benefits Security Administration.
"The money withheld from these workers for their retirement savings belongs to them and may not be diverted or used for other purposes," says James Purcell, EBSA's regional director in Kansas City. "We are seeking the recovery of all of these employees' hard-earned money, so it can support them in their later years."
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According to the lawsuit, the defendants withheld employee payroll contributions for a total of $19,903 between Feb. 8, 2008, and Dec. 31, 2009, when they were not timely deposited into the Nationwide Supply Inc. Savings Incentive Match Plan Individual Retirement Account. The defendants were also said to keep additional employee contributions for a total of $17,285 between May 2, 2008, and Dec. 31, 2009. During EBSA's investigation, the defendants repaid $6,748 of the amount owed, but more than $10,000 is still owed to six plan participants.
The DOL, which filed the complaint in the U.S. District Court for the District of Wyoming in Cheyenne, is attempting to collect repayment of all losses as well as interest to the plan. EBSA is designed to protect the retirement, health and other workplace-related benefits for American workers, retirees and their families. The agency oversees about 708,000 private sector retirement plans, 2.8 million health plans, covering more than 150 million Americans.
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