U.S. Labor Department sues owner of Tacoma, Washington-based Vincent’s Apartment Washer Service Inc. to recover workers’ SIMPLE plan contributions

Tacoma, Washington – The U.S. Department of Labor has sued Keith D. Vincent and Vincent’s Apartment Washer Service Inc. in the U.S. District Court for the Western District of Washington for allegedly using employee and employer contributions owed to the company’s savings incentive match plan for employees individual retirement account plan for the benefit of the company, in violation of the Employee Retirement Income Security Act.

The suit alleges that Vincent, the former owner and president of the company, and the company violated ERISA by not timely segregating and remitting employee contributions, as well as never remitting $9,576 in employee contributions to the SIMPLE plan, during the period between October 2004 and August 2005. Vincent allegedly co-mingled the employee contributions with the general assets of the company and used the money to pay general operating expenses. Vincent and the company also allegedly violated ERISA by failing to ensure $2,775 in mandatory employer matching contributions were paid to the plan.

The suit seeks a court order to require that Vincent and the company restore losses to the plan with interest, be removed as fiduciaries to the plan, and be permanently enjoined from serving as fiduciaries or service providers to any plan governed by ERISA. The suit also seeks the appointment of an independent fiduciary to wind down the plan and make final distributions of benefits.

Additionally, in a separate legal action, the department has filed an adversary complaint in the Chapter 7 bankruptcy proceeding of Keith D. Vincent to prevent him from discharging a $16,938 debt owed to the company’s retirement plan. That complaint, filed in the U.S. Bankruptcy Court for the Western District of Washington in Tacoma, alleges that Vincent used employee and employer contributions owed to the company’s savings incentive match plan for the benefit of the company.

“Plan officials have a duty to manage and protect employees’ benefit plans and their assets,” said Juliane Majette, acting regional director of the department’s Employee Benefits Security Administration San Francisco Regional Office, which investigated this case. “Our action today is designed to restore to the plan assets that were not properly preserved for the company’s workers.”

Employers and workers can reach EBSA’s Seattle office at 206.553.4244 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 www.dol.gov/ebsa.

Solis v. Vincent’s Apartment Washer Service, Inc. and Keith D. Vincent
Civil Action Number: 3:10-CV-05306

Solis v. Vincent
Adversary Case Number: 10-04090-PHB

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