U.S. Department of Labor obtains consent judgment requiring Winter Park, Florida, law firm to terminate pension plan and distribute assets to participants

Orlando, Florida – Bichler and Kelley P.A. and two individuals, the law firm’s director and office manager, have agreed to terminate the firm’s savings incentive match plan for employees individual retirement account (SIMPLE IRA) plan and distribute the assets to participants as part of a federal district court’s consent judgment and order.

The order, issued by the U.S. District Court for the Middle District of Florida, also requires the individual defendants, Geoffrey Bichler and Robin Dobson, be permanently barred from serving in the future as fiduciaries to any employee benefit plan subject to the Employee Retirement Income Security Act (ERISA).

The agreement results from a lawsuit filed by the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), which alleged that between 2005 and 2007 the defendants failed to forward employee contributions to the pension plan in a manner in accordance with ERISA, and commingled those funds with the general assets of the company.

These activities resulted in plan participants losing the benefit of their contributions and subsequent lost earnings. After the original lawsuit was filed in June 2008, a full restitution of funds was made to the plan.

“The Labor Department is very pleased that pension assets for plan participants have been protected,” said R.C. Marshall, EBSA’s regional administrator in Atlanta, Georgia.

Employers with similar problems who are not yet subjects of EBSA investigations may be eligible to participate in the department’s Voluntary Fiduciary Correction Program. 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.

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 Kelley, P.A.
Civil Action Number 6:C9-cv-1253-Orl-31 GJK

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