US Labor Department sues to restore employee contributions to 401(k) plan of 2 Pittsburgh companies

PITTSBURGH — The U.S. Department of Labor has filed a lawsuit against Sterling Printing and its president, John Louis Roberts, as well as Mara Scanlon Roberts, chief executive officer of M.R. Graphics LLC, for violating the Employee Retirement Income Security Act by failing to remit worker contributions to a 401(k) plan serving the employees of both Pittsburgh companies.

The suit alleges that from April 2004 to July 2006, the defendants failed to remit employee contributions to the plan and commingled them with the general assets of Sterling Printing and M.R. Graphics. Additionally, certain contributions were remitted late and without interest. 

“This case clearly demonstrates a breach of fiduciary duty,” said Mabel Capolongo, regional director of the Labor Department’s Employee Benefits Security Administration in Philadelphia. “We will hold fiduciaries accountable when they fail to act in the best interest of plan participants.” 

Filed in the U.S. District Court for the Western District of Pennsylvania, the suit seeks to restore to the plan all losses, including interest and opportunity costs, as well as the cost of an independent fiduciary. The suit also seeks to permanently bar the defendants from serving in a fiduciary capacity to any employee benefit plan covered by ERISA.

This case is part of EBSA’s national enforcement initiative to safeguard workers’ contributions to 401(k) and health benefit plans.  The department’s legal action resulted from an investigation by EBSA’s Philadelphia Regional Office, and the case was filed by the Labor Department’s Philadelphia Regional Solicitor’s Office.  For help with problems related to private sector pension and health plans, employers and workers can contact EBSA’s Philadelphia office at 215-861-5300 or toll-free at 866-444-3272.  Additional information can be found at www.dol.gov/ebsa. 

Solis v. John Roberts et al.
Civil Action Number:  11-00976-GLL

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U.S. Department of Labor news materials are accessible at www.dol.gov. The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling 202-693-7828 or TTY 202-693-7755.