Salem, New Hampshire, employer agrees to restore $100,000 to company profit-sharing plan to resolve U.S. Labor Department lawsuit

Archived News Release — Caution: Information may be out of date.

Boston – Richard E. Landry Sr., owner and operator of Landry Architects of Salem, New Hampshire, has agreed to repay $100,000 to the company’s profit-sharing plan under a consent judgment resolving a lawsuit filed by the U.S. Department of Labor over alleged violations of the Employee Retirement Income Security Act (ERISA).

The lawsuit, filed in June 2006, alleged that Landry violated ERISA when he failed to adequately monitor and control the activities of Bradford D. Bleidt and Bleidt’s companies, Allocation Plus Asset Management and Financial Perspectives Planning Services. Landry also failed to oversee and control plan assets, and to obtain a bond to protect the plan’s assets.

Bleidt and his companies provided investment and financial management services to the plan between January and November 2004. During that time, Bleidt used the plan’s funds for his own benefit and was convicted in December 2005 on criminal charges that resulted in his being sentenced to 11 years in prison.

“The law requires those who administer employee benefit plans to do so in a careful and prudent manner solely for the benefit of participants,” said Bradford P. Campbell, assistant secretary for the Labor Department’s Employee Benefits Security Administration (EBSA). “The department’s legal action sends a clear message that employers and plan trustees cannot neglect their fiduciary obligations to oversee the handling and investment of plan assets.”

The judgment, entered in U.S. District Court for the District of New Hampshire, orders Landry to repay to the plan a total of $100,000 and a civil monetary penalty of $10,000. Landry also was ordered to resign as the trustee and fiduciary to the plan, and to retain the services of a disinterested institutional trustee to serve as fiduciary of the plan.

This case was investigated by EBSA’s Boston Regional Office. Employers and workers can reach EBSA at 617.565.9600 or toll-free at 1.866.444.EBSA (3272) for help with problems relating to private sector retirement and health plans. In fiscal year 2007, EBSA achieved monetary results of $1.5 billion related to pension, 401(k), health and other benefits for millions of American workers and their families. Additional information can be found at www.dol.gov/ebsa.

Chao v. Richard E. Landry, Sr.
Civil Action Number: 1:06-CV-163-SM

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