US Labor Department sues Bigler, Pa., trucking company to recover employee's contributions and payments to 401(k) plan

Date of Action: Dec. 19, 2013

Name(s) of Defendant(s): David Kephart, Timothy Kephart, Kephart Trucking Co., and the Kephart Trucking Co. 401(k) plan

Allegations: In 1988, trucking company Kephart Trucking Co. in Bigler, Pa., established the Kephart Trucking Co. 401(k) plan for its employees. David Kephart, Timothy Kephart, and the company were plan fiduciaries, responsible for making decisions concerning the remittance of elective contributions to the plan.

An investigation conducted by the U.S. Department of Labor's Employee Benefits Security Administration found that from September 2011 to the present, the company deducted money from the participants' pay as employee contributions and participant loan repayments. The investigation determined that employee deductions representing voluntary contributions and loan repayments for employees of the company, totaling approximately $270,000 plus interest, were not remitted.

Resolution: The complaint seeks restitution to the plan of delinquent employee contributions and loan repayments, including lost opportunity costs; the appointment of an independent fiduciary to administer or terminate the plan, and offset any remaining individual account balances that David Kephart and Timothy Kephart have in the plan against the losses; and an injunction barring the defendants from serving as fiduciaries to any ERISA-covered plans.

Court: United States District Court for the Western District of Pennsylvania

Docket Number: 3:05-mc-02025

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.