Judge orders Thomas Benick and John Thommes to restore $24,676 to Thommes and Thomas Land Clearing SIMPLE IRA Plan in Scandia, Minn.

Date of Action:  Sept. 6, 2011

Type of Action:  Consent order and judgment

Names of Defendant: Thommes and Thomas Land Clearing, Inc., Thomas Benick and John Thommes, individually and as a fiduciaries to the Thommes and Thomas Land Clearing, Inc. SIMPLE IRA Plan

Allegations: A complaint was filed by the Department against Thommes and Thomas Land Clearing, Inc., Thommes and Benick on Jan. 7, 2011.  The complaint alleged Thommes and Benick withheld employee contributions from employees’ paychecks and failed to forward these employee contributions to the SIMPLE IRA Plan from January 2005 through December 2008.   The Department also alleged that there were lost opportunity costs owed to the SIMPLE IRA Plan for the unremitted and untimely remitted employee contributions. 

Resolution: The court ordered Thommes and Benick to make restitution to the plan in the amount of $24,676.40 which represents the $18,695.23 in unremitted employee contributions and $5,981.17 in lost opportunity costs which accrued as a result of the non-remittance and untimely remittance of employee contributions to the plan for the period of January 2005 through December 2008.

Thommes and Benick are also permanently enjoined from serving or acting as a fiduciary or service provider with respect to any employee benefit plan subject to the Employment Retirement Income Security Act.

Court: United States District Court, District of Minnesota

Docket Number: 11-cv-00041

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U.S. Department of Labor materials are accessible at www.dol.gov.  The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling 202-693-7828 or TTY 202-693-7755.