U.S. Labor Department obtains judgment to restore assets to Sandusky, Ohio-based pension plan

Archived News Release — Caution: Information may be out of date.

Sandusky, Ohio – The U.S. Department of Labor has obtained a default judgment holding liable James B. Sauers for $44,394 in improperly transferred retirement and profit-sharing plan assets, including interest, from an employee benefit plan for which he was responsible.

The judgment also removes Sauers as a fiduciary of the James B. Sauers M.D. Inc. Money Purchase Pension Plan, and permanently enjoins him from serving as a fiduciary or service provider to any plan covered by the Employee Retirement Income Security Act. The court also appointed an independent fiduciary to terminate the plan and distribute assets to plan participants.

“The department will act when plan fiduciaries fail to carry out their duty to protect the retirement plan assets held on behalf of participants,” said Joseph R. Menez, director of the department’s Employee Benefits Security Administration (EBSA) Cincinnati Regional Office.

Employers with similar problems who are not yet the subjects of EBSA investigations may be eligible to participate in the department’s Voluntary Fiduciary Correction Program (VFCP). Participation requires employers to make workers whole but allows them to avoid EBSA enforcement actions and civil penalties as well as any applicable excise taxes. For more information, see www.dol.gov/ebsa.

The suit, filed in federal district court in Cleveland, resulted from an investigation conducted by EBSA’s Cincinnati office. Employers and workers can reach the Cincinnati office at 859.578.4680 or toll-free at 1.866.444.EBSA (3272) for help with problems relating to private sector retirement and health plans. In fiscal year 2006, EBSA achieved monetary results of $1.4 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Chao v. Sauers
Civil Action No. 06-cv-03110

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Archived News Release — Caution: Information may be out of date.