US Department of Labor obtains consent judgment in Perez v. Covenant Equipment Corp. involving the company’s SIMPLE IRA plan in Rock Hill, SC

Date of Action: Nov. 21, 2013

Type of Action: Consent Judgment and Order

Name(s) of Defendant(s): Covenant Equipment Corp., doing business as Wholesale Fork Lifts Inc., and Mark Sowka

Allegations: In February 2005, Covenant Equipment Corp., based in Rock Hill, S.C., established a SIMPLE IRA plan for its employees. During the course of an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration, the agency found that from 2007 to 2009, the company and Mark Sowka failed in their fiduciary responsibility to forward $21,348.14 in employee contributions to the plan in a timely manner and also allowed the funds to be commingled with general company assets.

Resolution: In the consent judgment and order, defendant Sowka agreed to make restitution to the plan’s participants in the amount of $7,994.49. Sowka also agreed to complete eight hours of fiduciary training annually for as long as he serves as a fiduciary to any employee benefit plan subject to the Employee Retirement Income Security Act.

Court: United States District Court for the District of North Carolina, Middle District, Charlotte Division

Docket Number: 3:13-cv-00262-GCM-DSC

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.