U.S. Labor Department sues owner of Delaware-based Stover Industries to recover workers’ 401(k) contributions

Delaware, Ohio – The U.S. Department of Labor has sued Carl Stover and Stover Industries Inc. in Delaware, for allegedly using employee contributions owed to the company’s 401(k) plan to pay the operating expenses of the company, in violation of the Employee Retirement Income Security Act (ERISA).

The lawsuit alleges that Stover, who owns the company, violated ERISA by not timely segregating and remitting employee contributions and loan payments or never remitting employee contributions and loan payments to the plan during several different periods between January 2004 and July 2008. Instead, he allegedly co-mingled the employee contributions and loan payments with the general assets of the company, which were then used for general operating expenses.

The suit seeks a court order to require that Stover restore money owed to the plan with interest, to correct any transactions prohibited by law and to permanently bar him from serving in a fiduciary capacity to any plan governed by ERISA.

“The Labor Department will act to help workers get their benefits when plan assets are misused,” said Paul Baumann, regional director of the department’s Employee Benefits Security Administration (EBSA) Cincinnati Regional Office, which investigated this case.

Employers and workers can reach EBSA’s Cincinnati office at 859.578.4680 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. Additional information can be found at http://www.dol.gov/ebsa.

Solis v. Carl Stover and Stover Industries Inc.
Civil Action Number: 2:10-cv-00218

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