US Labor Department obtains default judgment against Oregon-based company and owner to restore nearly $178,000 to retirement plan

PORTLAND, Ore. – The U.S. Department of Labor has obtained a default judgment ordering Skinner Bonding of Oregon Inc. and Mary Anne Skinner, the company’s former owner and president, to restore $177,807 to the company’s salary savings and profit-sharing plan.

The judgment resolves the Labor Department's claims against Skinner and the company, who allegedly co-mingled and misappropriated $161,002 in plan assets, plus lost-opportunity income, in May 2006. The defendants allegedly used the money to pay expenses of the company and Skinner. Skinner and the company also allegedly did not remit $16,805, including lost-opportunity income, in employee contributions to the company’s retirement plan from Jan. 15, 2004, through May 31, 2005.

Under the judgment, entered in the U.S. District Court for the District of Oregon, Skinner and the company will make restitution to the plan within 15 days of the court’s order on Oct. 25, 2010, and are permanently enjoined from acting as service providers or fiduciaries to any ERISA-covered plan. The judgment also appoints an independent fiduciary to terminate the plan and distribute its assets to eligible participants and beneficiaries.  Litigation is ongoing against defendant Stephen G. Altishin.

“Plan fiduciaries have a legal obligation to act in the best interest of the plan and its participants, and will be held accountable when that obligation is not met,” said Jean Ackerman, director of the department’s Employee Benefits Security Administration San Francisco Regional Office.

The department’s legal action resulted from an investigation by EBSA’s district office in Seattle. Employers and workers may contact that office at 206-553-4244 or toll-free at 866-444-3272 for help with problems relating to private sector pension and health plans.

In fiscal year 2009, EBSA achieved monetary results of $1.3 billion in 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. Skinner Bonding of Oregon Inc.
Civil Action Number: CV-10-611 JO

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