U.S. Labor Department obtains judgment restoring more than $600,000 to profit-sharing plan of Orlando, Florida manufacturer

Archived News Release — Caution: Information may be out of date.

Orlando, Florida — The U.S. Department of Labor has obtained a judgment and order requiring Traylor Chemical & Supply Co., Orlando, Florida, to restore $612,658 plus interest to the company’s profit-sharing plan. The department also may assess a civil monetary penalty for violation of the Employee Retirement Income Security Act (ERISA).

“Those entrusted with retirement plan assets cannot use those funds to benefit themselves,” said Bradford P. Campbell, assistant secretary for the Labor Department’s Employee Benefits Security Administration (EBSA). “Last year, the department recovered $1.4 billion in retirement, 401(k), health and other benefits for workers and their families.”

Under the judgment, money restored to the plan will be allocated to the accounts of all plan participants except the defendant trustees.

The department’s lawsuit, filed simultaneously with the judgment in federal district court in Orlando, alleged that the company, William Traylor Jr., William E. Comer and Frances Hale violated ERISA when they executed 32 prohibited loans between the plan and Traylor Chemical. At the time of the improper loans, the defendants served as trustees of the plan as well as officers of the company.

The suit also alleges that the defendants failed to take action to restore the full amount of outstanding loans owed to the plan, and each defendant failed to monitor and correct the improper actions of the other plan trustees.

Traylor Chemical manufactures and distributes products related to the fertilizer industry. The plan had 33 participants according to the latest available data.

The Atlanta Regional Office of EBSA investigated the case. Employers and workers can reach the Atlanta office at 404.302.3900 or toll-free at 1.866.444.EBSA (3272) for help with problems relating to private sector retirement and health plans.

Chao v. Traylor Chemical & Supply Co.
Civil Action Number 6:07-cv-1258-orl-22UAM

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Archived News Release — Caution: Information may be out of date.