Department of Labor obtains consent judgment to restore unremitted employee contributions to retirement and health plans of Sunset Golf

Date of Action:  Feb. 4, 2014

Type of Action:  Consent Order and Judgment

Names of Defendants: Daniel Deighan, Timothy Deighan, Sunset Golf LLC, Revolution Golf LLC, Sunset Golf, LLC 401(k) Employee Retirement Plan, and Sunset Golf LLC Group Health Plan in Loudonville, Ohio.

Allegations: The complaint alleged that from Oct. 4, 2007, through March 16, 2011, Daniel Deighan and Sunset Golf LLC failed to remit $26,277.28 in participant contributions and participant loan repayments that were withheld from employees’ paychecks to the retirement plan. Daniel Deighan and Sunset Golf LLC also failed to timely remit employee contributions and loan repayments to the retirement plan.

The complaint also alleged that from Dec. 1, 2010, through Jan. 4, 2011, and from March 5, 2011, through June 3, 2011, Daniel Deighan, Timothy Deighan, and Sunset Golf LLC failed to remit $8,271.51 in insurance premiums withheld from employees’ paychecks to the health plan or the health insurance carrier.

Resolution: The consent order and judgment notes that Daniel Deighan and Timothy Deighan made restitution to participants of the health plan after the initiation of the litigation in the amount of $8,934.27, representing $8,271.51 in unremitted insurance premiums and $662.76 in lost opportunity costs. 

The order also notes that Daniel Deighan paid $22,566.21 to an escrow account in the name of the retirement plan, and requires Sunset Golf LLC and Daniel Deighan to pay the remaining balance of $13,714.24 to the retirement plan within five days of the entry of the consent order and judgment.  The full $36,280.45 balance to be paid to the retirement plan represents $26,277.28 in unremitted employee contributions and loan repayments and $10,003.17 in lost opportunity costs. 

Finally, upon entry of the order, Timothy Deighan will be permanently enjoined from serving or acting as a fiduciary or service provider to an employee benefit plan subject to ERISA.  Daniel Deighan will also be permanently enjoined from serving or acting as a fiduciary or service provider to an employee benefit plan subject to Employee Retirement Income Security Act after paying the remaining balance to the retirement plan, allocating the employee contributions and lost opportunity costs to participants, distributing the plan’s assets, and terminating the plan.

Employers and workers can reach EBSA toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans.  Additional information can be found at www.dol.gov/ebsa.

Court: United States District Court for the Northern District of Ohio

Docket Number: 1:13-cv-02398-JG

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.