US Labor Department files suit against fiduciary of Weymouth, Mass. profit-sharing plan to recover unremitted employee contributions

Date of Action: January 30, 2014

Type of Action: Complaint

Name of Defendant: Thomas R. Brewer, in his capacity as fiduciary of the Matthewson Corp. Inc. 401(k) Profit Sharing Plan

Allegations: The Matthewson Corp. Inc. 401(k) profit sharing plan was established in January 1984 to provide retirement benefits for employees of the Matthewson Corp. Inc. and their beneficiaries. The company is the plan sponsor and administrator; Thomas R. Brewer, the company’s owner, president and director, is the plan’s trustee. In those roles, they were responsible complying with the requirements of the Employee Retirement Income Security Act.

The plan is funded, in part, by withheld contributions from participants’ paychecks which are forwarded to and become assets of the plan. An investigation by the Labor Department’s Employee Benefits Security Administration found that, from January 2008 to the present, the company failed to remit to the plan withheld employee contributions totaling $17,071.53 plus interest, and Brewer failed to take steps to ensure that the contributions were forwarded.

Resolution: The Department is asking the court to require Brewer to undo the prohibited transactions in which he engaged and to restore to the plan any and all losses incurred as the result of his breaches, plus interest; prohibit future ERISA violations by Brewer; and permanently prohibit Brewer from serving as a fiduciary to any ERISA covered plan.

Court: U.S. District Court for the District of Massachusetts

Docket Number: 1:14-cv-10227-FDS

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.