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

Columbus, Indiana – The U.S. Department of Labor has sued the owner of Hoosier Foot & Ankle LLC, a non-surgical foot and ankle care business in Columbus, for failure to carry out his fiduciary duty to monitor the service provider to the company’s 401(k) plan in violation of the Employee Retirement Income Security Act (ERISA).

The department’s lawsuit alleges that business owner Patrick DeHeer imprudently selected Lafferty & Partners as the plan administrator and failed to monitor that company’s handling of the Hoosier Foot & Ankle LLC 401(k) Plan. As a result, the assets were stolen by the plan administrator, as evidenced in a securities fraud lawsuit in New Jersey in 2008. That suit was resolved when officers of Lafferty & Partners pleaded guilty and admitted that money intended for investment on behalf of clients was spent to purchase a home and pay personal expenses.

The Labor Department has asked the court to order restoration of all assets owed to the retirement plan and permanently enjoin DeHeer from serving as an ERISA fiduciary or service provider.

“Company executives are obligated by law to properly monitor the actions of those who provide services to employee benefit plans and to deter preventable losses to plans,” said Paul Baumann, director of the Cincinnati Regional Office of the department’s Employee Benefits Security Administration (EBSA), which conducted the investigation leading to this suit.

The suit was filed in federal district court in Indianapolis, Indiana.  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 EBSA’s Cincinnati, Ohio, 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. Patrick DeHeer
Civil Action Number: 1:10cv00070

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