Fiduciary restores more than $10K to SGH Communications, Inc. SIMPLE Plan in Lakeville, Minnesota

Date of Action: May 14, 2015

Type of Action: Consent order and judgment

Names of Defendant: Jean Hanvik, SGH Communications, Inc., SGH Communications, Inc. SIMPLE Plan

Allegations: Jean Hanvik was the sole owner of SGH Communications, Inc. in Lakeville, Minnesota. SGH Communications, Inc. was the plan administrator for the SGH Communications Inc. SIMPLE Plan.

During periods from at least Aug. 12, 2011 to April 26, 2012, SGH Communications, Inc. withheld contributions from an employee’s pay in salary deferral contributions intended for the SGH Communications Inc. SIMPLE Plan and retained the funds in the company’s general operating account in violation of the Employee Retirement Income Security Act. During periods from at least Jan.14, 2011 to April 26, 2012, SGH Communications Inc. failed to timely remit an employee’s salary deferral contributions intended for the plan and retained those monies in its general operating account until they were remitted.

Resolution: Pursuant to the judgment, Jean Hanvik has restored the $10,295.38 in unremitted employee contributions and associated lost opportunity costs owed to the plan.

The judgment also permanently enjoins Hanvik and the company from serving as fiduciaries or service providers to any ERISA-covered employee benefit plan in the future.

Employers and workers can reach EBSA toll-free at 866-444-3272 for help with problems relating to private-sector retirement and health plans. Additional information can be found at www.dol.gov/ebsa.

Court: United States District Court for the District of Minnesota, Minneapolis

Docket Number: 0:15-cv-00577

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