Department of Labor files suit to recover $12,000 for the First Profit Sharing Plan and Trust of Sunset Heating and Cooling in Walled Lake, Mich.

Date of Action: Nov. 30, 2012

Type of Action: Complaint

Names of Defendant: Brian Kirshner, Bennett W. Sipes, First Profit Sharing Plan and Trust of Sunset Heating and Cooling, Inc.

Allegations: Sunset Heating and Cooling Inc. has not administered the First Profit Sharing Plan and Trust since the company was dissolved in 2006. The company was the plan’s administrator, and co-owner Kirshner was the plan’s sole trustee. In May 2009, Sipes, the company’s other co-owner, allegedly directed the plan’s asset custodian to distribute a portion of plan assets to himself.  Sipes received two checks totaling $11,993.53 in June 2009, and allegedly misallocated and distributed the assets to himself and other plan participants.

The plan had four participants and assets totaling $12,009.04 as of Sept. 28, 2012.

Resolution: The complaint seeks to require Sipes to restore losses to the plan including lost opportunity costs, and appoint an independent fiduciary to terminate the plan and distribute the assets, remove the defendants from their positions as plan fiduciaries, and permanently bar the defendants from serving as a fiduciary or service provider to a plan covered by Employee Retirement Income Security Act.

Court: United States District Court for the Eastern District of Michigan, Detroit

Docket Number: 2:12-cv-15285

Employers and workers can reach EBSA toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans.  Additional information can be found at www.dol.gov/ebsa.

U.S. Department of Labor 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.