U.S. Department of Labor sues owner of defunct Kearneysville, West Virginia, corporation

Kearneysville, West Virginia – The U.S. Department of Labor has filed an adversary complaint in federal bankruptcy court against Sherry Hill, part owner of now defunct Stinger Sheet Metal, Inc., to prevent her from discharging an alleged debt of $63, 347 owed to the company’s SIMPLE IRA employee benefit plan.

“Plan fiduciaries will be held accountable when they abuse their positions and do not protect the assets entrusted to them,” said Mabel Capolongo, director of the department’s Employee Benefits Security Administration (EBSA) in Philadelphia.

An EBSA investigation found that from January 1, 2006 to December 31, 2008, employee salary withholdings in the amount of $31,766.20 were not transmitted to the employee benefit plan, and required employer contributions in the amount of $31,580.95 were not collected. The corporation ceased business activities in early 2009. Hill filed for protection under Chapter 7 on May 8, 2009.

Stinger Sheet Metal Inc. provided ductwork for high rise buildings in the Baltimore, Maryland, and Washington, D.C., areas.

The complaint was filed October 13 in the U.S. District Court for the Northern District of West Virginia.

The suit resulted from an investigation conducted by EBSA’s Washington District Office. Employers and workers can contact that office at 202.693.8700 or toll-free at 866.444.3272 for help with problems relating to private sector pension and health plans. 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. Additional information can be found at www.dol.gov/ebsa.

Solis v. Sherry L. Hill
Civil Action Number: 3:09-BK-01040

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