Court orders default judgment requiring fiduciary to restore more than $7,000 to Spencer & Associates Profit Sharing & 401(k) Plan in Springfield, Ohio

Date of Action: Jan. 25, 2013

Type of Action: Default judgment

Names of Defendant:Tannile Elizabeth Ortiz, a fiduciary to the Spencer & Associates LLC Profit Sharing and 401(k) Plan

Allegations: Ortiz failed to plead or otherwise defend against a complaint filed in August 2012 alleging that she as well as two other defendants, Bruce E. Spencer and Paul Olzeski, failed in their capacity as plan fiduciaries to remit $8,330.40 and to timely remit $8,378.36 to the Spencer & Associates LLC Profit Sharing and 401(k) Plan, allowing these funds to remain part of the company’s general assets and thereby be used for business expenses.  Spencer & Associates, LLC ceased business operations in September of 2010.  In October, Spencer closed the Plan account, removed all assets in the amount of $34,295.55 and deposited these assets into a personal bank account.  Funds belonging to other plan participants have not been distributed.

Resolution: Ortiz has been ordered to restore $7,061.95, representing principal and lost opportunity costs to the Spencer & Associates LLC Profit Sharing and 401 (k) Plan within 30 days to nine plan participants. Ortiz will also waive $4,321.43 which is owed to herself, as a result of her fiduciary breaches and is permanently barred from serving as a fiduciary or service provider to any ERISA-covered employee benefit plan.

Court: United States District Court Southern District of Ohio, Western Division, Dayton

Docket Number: 3:12-cv-00283

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.