Judge orders Columbus, Ind.-based Hoosier Foot & Ankle, owner to restore $18,000 to company 401(k) plan following Labor Department investigation

COLUMBUS, Ind. – A federal district court in Indianapolis has ordered Hoosier Foot & Ankle LLC, a non-surgical foot and ankle care business in Columbus, and owner Patrick DeHeer to repay $18,000 in employee contributions and lost opportunity costs to the participants and beneficiaries of the company’s 401(k) profit-sharing plan. The order and a consent judgment were obtained by the U.S. Department of Labor, resolving a lawsuit it filed alleging violations of the Employee Retirement Income Security Act.

“Fiduciaries are obligated by law to monitor employee benefit plan administrators and to deter preventable losses,” said Paul Baumann, director of the Cincinnati Regional Office of the Labor Department’s Employee Benefits Security Administration, which conducted the investigation that led to the suit. “When fiduciaries fail in their responsibilities to properly administer all aspects of benefit plans, the Labor Department will continue to help workers obtain their rightful benefits.”

The department’s suit alleged that DeHeer imprudently selected Lafferty & Partners as the plan administrator and failed to monitor that company’s handling of the Hoosier Foot & Ankle LLC 401(k) Plan.  As a result, the assets were stolen by the plan administrator, who was found guilty of securities fraud on unrelated charges in New Jersey in 2008.  That suit was resolved when officers of Lafferty & Partners pleaded guilty and admitted that money intended for investment on behalf of clients was spent to purchase a home and pay personal expenses.

In addition to repaying contributions and lost opportunity costs, the judgment requires DeHeer to pay $1,800 in civil money penalties and permanently enjoins him from violating ERISA.

Employers and workers can reach EBSA’s Cincinnati office at 859-578-4680 or toll-free at 866-444-3272 for help with problems relating to private sector retirement and health plans. Additional information can be found at http://www.dol.gov/ebsa.

Solis v. Patrick DeHeer
Civil Action Number: 1:10cv00070

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