U.S. Labor Department sues fiduciary of ERISA-covered plan sponsored by Lansing, Michigan-based company

Lansing, Michigan – The U.S. Department of Labor has sued an officer and fiduciary to the retirement plan of the Popoff Meat Co. in Lansing for improperly using plan assets withheld from employees’ paychecks for the benefit of the company, in violation of the Employee Retirement Income Security Act (ERISA).

The department’s lawsuit alleges that Timothy H. McCarthy Jr., president of the company, caused the company to retain certain participant contributions intended for the ERISA-covered plan in 2005 and 2007. He also allegedly failed to remit contributions in a timely fashion.

In addition, McCarthy allegedly failed to take fiduciary responsibility for the operation and administration of the plan and its assets after the company ceased operations in April 2007, and he did not obtain a fidelity bond. The Labor Department has asked the court to restore all assets owed to the retirement plan, remove McCarthy as the plan’s fiduciary, and appoint a new fiduciary to administer the plan and distribute its assets to participants and beneficiaries.

“The Labor Department will continue to help workers obtain their benefits when plan assets are either misused or the plans are abandoned,” said Paul Baumann, director of the Cincinnati Regional Office of the department’s Employee Benefits Security Administration (EBSA).

The suit, filed in federal district court in Lansing, Michigan, resulted from an investigation conducted by EBSA’s Cincinnati Regional Office. In fiscal year 2009, EBSA achieved monetary results of $1.3 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Employers and workers can reach the office at 859.578.4680 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans.

Solis v. Timothy H. McCarthy Jr.
Civil Action Number 1:09-cv-01164

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