Texas business owner sued by U.S. Department of Labor over misuse of 401(k) contributions and loan repayments

Dallas – The U.S. Department of Labor has sued the owner of defunct TMPR Inc. of Dallas for improperly using employee contributions and loan repayments owed to the Cliff Management 401(k) Plan for the benefit of the company.

“Employers and their executives will be held accountable by the Labor Department when they misuse the hard-earned retirement assets of America’s workers and retirees,” said Roger Hilburn, director of the Dallas Regional Office of the department’s Employee Benefits Security Administration (EBSA).

The lawsuit alleges that the company’s owner, William Baldridge, violated the Employee Retirement Income Security Act (ERISA) by failing to forward employee contributions and loan repayments owed to the 401(k) plan during the period from January 2004 through September 2009. The suit also alleges that the defendant used the assets for his own benefit and interests, and did not properly administer the plan.

As relief, the suit asks the court to require Baldridge to restore all losses with interest and correct any transaction prohibited by ERISA, as well as to permanently bar him from acting as a fiduciary to the plan or any other employee benefit plant covered by ERISA. The suit also asks that Baldridge be required to appoint an independent fiduciary to be approved by the department and the court to ensure that plan assets recovered in this case are disbursed to plan participants, provide quarterly progress reports and ultimately terminate the plan.

Employers and workers can reach EBSA’s Dallas office at 972.850.4500 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans. 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.

Solis v. Baldridge
Civil Action Number 3-10-cv-00071, United States District Court, North District of Texas, Dallas Division

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