U.S. Labor Department obtains judgment against former West Palm Beach, Florida, ceramic tile contractor to restore funds to company’s pension plan

West Palm Beach, Florida – A federal court in West Palm Beach, Florida, has approved a consent judgment between the U.S. Department of Labor and officers of Bonnie Tile Corp. to restore funds to the company’s savings incentive match plan for employees individual retirement account (SIMPLE IRA) plan.

The U.S. District Court for the Southern District of Florida in West Palm Beach has found that Dennis Hughes, Susan Hughes and John Frank Mason breached their fiduciary responsibilities in violation of the provisions of the Employee Retirement Income Security Act (ERISA).

The judgment requires the Hugheses to restore $3,500 and Mason to restore $6,582.02 to the plan. The payments will be allocated to the accounts of eligible plan participants and beneficiaries.

The Hugheses are permanently barred from acting as fiduciaries of any plan subject to ERISA, and Mason is temporarily barred from serving in a fiduciary capacity of ERISA plans until he has completed eight hours of fiduciary education. If Mason resumes the duty of a fiduciary, he will be required to obtain eight hours of fiduciary education annually while serving as a fiduciary.

The defendants also are required to pay a civil penalty equal to 20 percent of the applicable recovery amount.

Bonnie Tile Corp. was a ceramic tile contractor based in West Palm Beach.

Employers with similar problems who are not yet subjects of investigations by the Labor Department’s Employee Benefits Security Administration (EBSA) may be eligible to participate in the department’s Voluntary Fiduciary Correction Program. Participation requires employers to make workers whole but allows them to avoid EBSA enforcement actions, civil penalties and any applicable excise taxes.

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. Employers and workers can reach EBSA’s Atlanta Regional Office at 404.302.3900 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans. For more information, see www.dol.gov/ebsa.

Solis v. Dennis Hughes
Civil Action File Number 09-80523

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