Solis v. Tomco Auto Products, Inc. involving summary judgment and default judgment of Tomco Auto Products, Inc. in Los Angeles, Calif.

Date of Action: Jan. 31, 2013

Type of Action: Motions for Summary Judgment and Entry of Default Judgment

Names of Defendants: Richard Alan Schoenfeld and Tomco Auto Products, Inc.

Allegations: Plan fiduciaries improperly withdrew $197,000 from the plan in late 2004, and used the money to pay the financial obligations of Tomco Auto Products, Inc. Plan fiduciaries failed to repay $47,000 in principal plus $22,511.36 in lost earnings to the plan.

Resolution: The secretary filed a Motion for Entry of Default Judgment against defendant Tomco Auto Products, Inc. for failing to respond to the secretary’s complaint, and also filed a Motion for Summary Judgment against Tomco and Richard Alan Schoenfeld. The court found that Tomco and Schoenfeld were jointly and severally liable to restore losses to the plan and enjoined Tomco and Schoenfeld from serving as plan fiduciaries, stating, “. . . in light of the serious misconduct on the part of [Tomco and Schoenfeld] in misusing Plan funds, the Court finds appropriate equitable relief to include a permanent injunction against [Tomco and Schoenfeld] from serving as fiduciaries . . . .” The court also ordered the appointment of an independent fiduciary to manage the plan going forward, and awarded post-judgment interest to the secretary on behalf of the plan. Schoenfeld’s debt to the plan is non-dischargeable under Section 523(a)(4) of the Bankruptcy Code, the court ruled, because he misappropriated trust funds while acting in a fiduciary capacity. Tomco ceased operations in October 2006.

Court: United States District Court for the Central District of California- Los Angeles Division

Docket Number: 2:12-cv-00618-SJO-AGR, 2:12-cv-02220-SJO-AGR

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.