Administrator of Maine Pension Plans Ordered to Pay Over $125,000 to Resolve U.S. Labor Department Lawsuit

Archived News Release — Caution: Information may be out of date.

Boston, Massachusetts - A major owner of Payroll Benefits Inc., Auburn, Maine, agreed to make restitution of more than $125,000 to 18 pension plans administered by the firm. Robert Montgomery, who owned 49% of the company, agreed to the court order to settle a lawsuit filed by the U.S. Department of Labor.

“Those who manage workers’ retirement plans have a legal responsibility to properly manage and protect the funds entrusted to them,” said Ann L. Combs, assistant secretary of labor for employee benefits security. “When they fail to meet their responsibilities, the Department of Labor will not hesitate to step in to ensure that workers are paid the benefits they are promised.”

Montgomery was responsible for administering the assets of the pension plans between February 1998 and early 2001. The suit alleged that he violated the Employee Retirement Income Security Act (ERISA) when he was delinquent in forwarding plan contributions to designated investment funds; did not keep accurate records regarding individual accounts, and furnished delinquent and inaccurate benefits statements to the plans’ participants. Montgomery, who acted as an investment advisor to plan participants, also allegedly received undisclosed commissions in connection with the investment of the plans’ assets.

The judgment prohibits Montgomery from service as a fiduciary to any employee benefit plan governed by ERISA for five years and orders him to pay $125,012.46 in restitution to participants of the pension plans he administered.

The legal action resulted from an investigation conducted by the Boston regional office of the department’s Employee Benefits Security Administration (EBSA). In fiscal year 2005, EBSA achieved monetary results of $1.7 billion related to the pension, 401(k), health and other benefits for millions of American workers and their families.

Employers and workers can contact the Boston regional office at 617.565.9600 or EBSA’s toll-free number, 1.866.444.EBSA (3272), for more information on the requirements of ERISA or for help with problems relating to private-sector pension and health plans. Additional information can be found at www.dol.gov/ebsa.

(Chao v Robert Montgomery)
Civil Action Number: 06-55-B-W

U.S. Department of Labor news releases are accessible on the Department's Newsroom page. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the COAST office. Please specify which news release when placing your request at 202.693.7765 or TTY 202.693.7755. The U.S. Department of Labor is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit the Department's Compliance Assistance page.

Archived News Release — Caution: Information may be out of date.

Contact Name: John M. Chavez
Phone Number: 617.565.2075