U.S. Department of Labor sues Burnsville, Minnesota, executive to restore plan assets and bar defendant from serving as plan fiduciary

Burnsville, Minnesota – The U.S. Department of Labor has sued Larry Lauterbach, the president and former owner of the Burnsville construction company Slate Cement Inc., for making untimely and delinquent participant contributions and loan repayments to the company’s 401(k) plan and to its health and dental plan in violation of the Employee Retirement Income Security Act.

The lawsuit, filed in the U.S. District Court of Minnesota, alleges that Lauterbach violated ERISA when he did not forward employee contributions to the 401(k) plan from June 3, 2006, through September 24, 2008. He also allegedly failed to pay employee health and dental insurance premiums to medical and dental insurance providers from June 1 to July 21, 2007, and from November 3, 2007, to May 24, 2008. During these periods, employee assets were co-mingled with the general assets of the company.

The suit seeks a court order to require repayment of losses to the plan, permanently bar defendant Lauterbach from serving as a fiduciary or service provider to any ERISA-covered employee benefit plan in the future and appoint an independent fiduciary to administer the plans.

“This defendant deprived employees of their retirement assets and health and dental insurance premiums,” said Steve Eischen, director of the Kansas City Regional Office of the Labor Department’s Employee Benefits Security Administration.

In fiscal year 2009, EBSA achieved monetary results of $1.3 billion related to the pension, 401(k), health and other benefits for millions of American workers and their families. Employers and workers can reach EBSA’s Kansas City Regional Office at 816.285.1800 or can contact EBSA’s toll-free number, 866.444.3272, for help with problems relating to private sector retirement and health plans.

Solis v. Larry Lauterbach
Civil Action File Number 0:10-cv-01739-JNE-FLN

U.S. Department of Labor news releases are accessible on the Department's Newsroom page. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at 202.693.7828 or TTY 202.693.7755. The Labor Department is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit the Department's Compliance Assistance page.