Judge orders fiduciaries to restore more than $52,000 to Sun Mortgage Corp. 401(k) Plan following Department of Labor investigation

Date of Action: March 4, 2013

Type of Action: Default Judgment

Names of Defendants: Sun Mortgage Corp., LLC and Derek Michael Danks, president of Sun Mortgage, and Karen Williams, individually and as fiduciaries to the Sun Mortgage Corp., LLC 401(k) Plan

Allegations: Derek Michael Danks and Karen Williams in their capacity as fiduciaries to the plan failed to ensure that $30,786.90 in participant contributions and participant loan repayments from the period Aug. 1, 2006, through July 6, 2009, were remitted to the employee’s plan accounts. Additionally, Danks and Williams failed to ensure participant contributions and participant loan repayments totaling $29,718.90 for the period April 1, 2006, through Jan. 16, 2008, were forwarded to the plan in a timely manner.

Resolution: The judgment requires Danks, Williams, and Sun Mortgage to restore $52,172.93 to the Plan for unremitted participant contributions and loan repayments, and interest on the unremitted and untimely remitted participant contributions and loan repayments.  The judgment further ordered Danks and Williams to be removed as fiduciaries of the Plan, permanently enjoined them from serving as fiduciaries or service providers to any ERISA-covered plan, and appointed an independent fiduciary to terminate the plan and distribute its assets.   

Court: Southern District of Indiana, Indianapolis Division, Indianapolis, Ind.

Docket Number: 1:12-cv-639

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.