US Department of Labor sues Minnesota-based Greeder Mondor Electric and owner to distribute assets from company’s 401(k) plan to employees

OAK PARK HEIGHTS, Minn. – The U.S. Department of Labor has sued Greeder Mondor Electric Co., a defunct Oak Park Heights electrical contractor, and the company’s owner, Scott Mondor, for allegedly failing to administer and terminate the Greeder Mondor Electric Co. 401(k) Profit Sharing Plan in violation of the Employee Retirement Income Security Act.

The lawsuit, filed in U.S. district court in St. Paul, alleges that Mondor failed to administer and/or terminate the company’s plan, which has prevented qualified participants from obtaining distributions of their individual account balances. The company ceased operations in 2008. At that time, the profit sharing plan had five participants and assets totaling $12,169. 

“Our legal action underscores the Labor Department’s commitment to hold accountable those who are entrusted with the assets of workers’ retirement plans,” said Jim Purcell, acting regional director of the department’s Employee Benefits Security Administration in Kansas City, Mo. “Retirement plans are individual assets and to prevent employees from accessing their own accounts is unjust. The Department of Labor will continue to help workers obtain their rightful benefits when plan fiduciaries fail to do so.”

The suit seeks a court order for Mondor to distribute the plan’s assets to qualified participants and to terminate the plan. It also seeks to permanently bar Mondor from serving as a fiduciary or service provider to any ERISA-covered employee benefit plan in the future.

EBSA protects the security of the retirement, health and other workplace-related benefits of America’s workers, retirees and their families. This investigation was conducted by EBSA’s Kansas City Regional Office in Missouri and was litigated by the department’s regional solicitor in Chicago. Employers and workers can reach EBSA’s Kansas City office at 816-285-1800 or toll-free at 866-444-EBSA (3272) for help with problems related to private sector retirement and health plans. Additional information can be found at www.dol.gov/ebsa.

Solis v. Mondor, Greeder Mondor Electric Co.
Civil Action Number: 0:11-cv-00904

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