US Labor Department obtains court order for defunct Ohio-based Stover Industries owner to repay more than $16,700 to beneficiaries of 401(k) plan

DELAWARE, Ohio – A federal district court in Columbus, Ohio, has entered a consent order and judgment requiring Carl Stover, the owner and president of Stover Industries Inc. in Delaware, Ohio, to pay $16,729 for employee contributions and lost opportunity costs to the participants and beneficiaries of the company’s 401(k) plan. The judgment is based on an investigation conducted by the U.S. Department of Labor’s Employee Benefits Security Administration.

Stover allegedly used 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.

The judgment states that Carl Stover violated his fiduciary duties and ERISA rules by not timely segregating and remitting employee contributions and loan payments, and not remitting employee contributions and loan payments to the plan during several different periods between January 2004 and July 2008.

“We are pleased that the 401(k) participants will receive the money that rightfully belongs to them,” said Paul Baumann, director of EBSA’s Cincinnati Regional Office in Ohio, which investigated the case. “The Labor Department will continue to help workers obtain their benefits when fiduciaries fail in their responsibilities to properly administer all aspects of retirement plans.”

Employers and workers can reach EBSA’s regional office at 859-578-4680 or toll-free at 866-444-3272 for help with problems related 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
Civil Action Number: 2:10cv218

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