U.S. Department of Labor sues Winter Park, Florida, law firm to protect retirement assets

Orlando, Florida – The U.S. Department of Labor has sued Bichler and Kelly P.A. and two of its attorneys to protect the assets of the law firm’s savings incentive match plan for employees individual retirement account (SIMPLE IRA).

Filed in the U.S. District Court for the Middle District of Florida, the lawsuit alleges that Geoffrey Bichler and Robin Dobson violated provisions of the Employee Retirement Income Security Act (ERISA) on approximately 100 occasions when they withheld employee contributions owed to the plan. They allegedly also failed to remit the money in a timely manner in accordance with ERISA and the plan’s governing documents.

At various times between 2005 and 2007, the contributions were never forwarded to the plan, resulting in the funds being commingled with the general assets of the company and plan participants losing the benefit of their contributions and subsequent lost earnings.

“The defendants have a fiduciary duty to handle SIMPLE IRA contributions for the exclusive benefit of the retirement plan and its participants, and not to use these funds for company purposes and obligations,” said R.C. Marshall, regional administrator for the department’s Employee Benefits Security Administration (EBSA) in Atlanta.

The Labor Department is asking the court to require the defendants to restore to the plan all losses, including interest or lost opportunity costs, which occurred as a result of their breaches of fiduciary obligations. The department is also asking the court to appoint a successor fiduciary or administrator at the defendants’ expense and permanently bar the defendants from serving in the future as fiduciaries to any employee benefit plan subject to ERISA.

The Winter Park, Florida, law firm established the plan in April 2005 and permitted participants to contribute a portion of their pay to the plan through payroll deductions. The plan required Bichler and Kelly to make matching employer contributions up to three percent of each employee’s contribution.

In fiscal year 2008, EBSA achieved monetary results of $1.2 billion related to pension, 401(k), health and other benefits for millions of American workers and their families. Employers and workers can reach EBSA’s Atlanta Regional Office at 404.302.3900 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans. For more information, see www.dol.gov/ebsa.

Solis v. Bichler and Kelly, P.A.
(Civil Action Number 6:C9-cv-1253-Orl-31 GJK)

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