Labor Department obtains judgment and order against Carolina Crawler & Equipment of Charleston Inc. to restore employee contributions to the company’s SIMPLE IRA plan

Date of Action: March 11, 2016

Type of Action: Consent Judgment and Order

Name of Defendants: Carolina Crawler & Equipment of Charleston Inc., Susan Mills, Glenn Perry Mills, Carolina Crawler & Equipment SIMPLE IRA Plan

Allegations: Carolina Crawler, based in North Charleston, South Carolina, established a SIMPLE IRA plan in 1986 for its employees. Following an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration, the agency found that from January 2008 to January 2012, Carolina Crawler, Susan Mills and Glenn Mills failed in their fiduciary responsibility to forward $43,386 in employee contributions to the plan in a timely manner. The defendants also allowed the funds to be commingled with general company assets. In January 2015, the department filed a complaint against the defendants seeking the restoration of losses, including interest or lost opportunity costs, to the plan. The department also sought an injunction to permanently enjoin the defendants from serving as a fiduciary, administrator, officer, trustee, custodian, agent, employee, representative, or having control over the assets of any employee benefit plan subject to the Employee Retirement Income Security Act.

Resolution: In the consent judgment and order, the defendants admitted to each allegation in the complaint and agreed to make restitution to the plan in the amount of $48,734 to be allocated to all participants with the exception of the defendants. Defendants Glenn Perry Mills and Susan B. Mills also agreed to waive funds owed to them totaling $10,164 and $7,683, respectively. The defendants’ son, Glenn Perry Mills Jr., also agreed to waive monies owed to him totaling $5,952. Restitution is required to be paid with an $18,500 payment within five days following entry of the order and $2,144 on the first day of each month for the following three months.

Court: U.S. District Court for the District of South Carolina, Charleston Division

Docket Number: 2:15-cv-00406-RMG