US Labor Department sues owner of defunct Montana trucking companies to restore assets to two SIMPLE IRA plans

BOULDER, Mont.—The U. S. Department of Labor has sued the owner of M.S. Molitor Trucking Inc. and M.D. Service LLC of Boulder, Mont., for failure to timely deposit $144,398.49 in delinquent employee contributions owed to the company’s SIMPLE IRA plans in violation of the Employee Retirement Income Security Act. The companies ceased operations as of Dec. 1, 2008.

Michael P. Molitor allegedly failed to timely remit $116,578.10 in contributions deducted from employees’ paychecks and lost interest to the M.S. Molitor Trucking plan from September 2004 through March 2008, of which $51,137.81 still has not been deposited into the plan. As a result of Molitor’s improper actions, the plan’s participants allegedly lost $14,617.54 in interest. Over the same time periods, Molitor allegedly failed to timely forward $27,820.39 to the M.D. Service plan, including $12,145.06 that has not yet been forwarded to the plan. Participants of this plan allegedly lost $4,206.41 in interest as a result of Molitor’s improper actions.

Filed in the US District Court for the District of Montana, the suit seeks to recover all money owed to the two plans and any lost opportunity interest. The suit also asks the court to permanently enjoin Molitor from serving as a fiduciary or service provider to any employee benefit plan subject to ERISA.

“This lawsuit underscores the Labor Department’s commitment to hold accountable those who are entrusted with the assets of workers’ retirement plans,” said Steve Eischen, director of the Kansas City Regional Office of the department’s Employee Benefits Security Administration.

Employers and workers can reach EBSA’s Kansas City office at 816-285-1800 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. Molitor
Civil Action Number 6:10-cv-00042-CCL

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