US Department of Labor files suit to recover losses to Cargill Heating & Air Conditioning Co. Inc. Savings Plan in La Crosse, Wis.

Date of Action: March 25, 2014

Type of Action: Complaint

Names of Defendants: Cargill Heating & Air Conditioning Co. Inc., Michael Earl Galstad, and Cargill Heating & Air Conditioning Co. Inc. Savings Plan in La Crosse, Wis.

Allegations: The U.S. Department of Labor filed a lawsuit on March 25, 2014 in the U.S. District Court for the Western District of Wisconsin, alleging violations of the Employee Retirement Income Security Act by the defendants. Galstad was president and majority owner of Cargill Heating & Air Conditioning Co. and failed to remit $27,812.90 in employee contributions to the Cargill Heating & Air Conditioning Co. Inc. Savings Plan from June 25, 2009, to April 12, 2012. The contributions remained in the company’s general funds for its use. On Dec. 12, 2012, Galstad restored $23,657.86 in unremitted employee contributions to the plan; however, $4,155.04 in employee contributions remains outstanding.

Additionally, pursuant to several state and federal contracts subject to the Davis Bacon Act, Service Contract Act, or state prevailing wage laws, Cargill and Galstad agreed to pay employer contributions as prevailing wage fringe benefits to the plan. Between June 30, 2009, and April 30, 2012, $236,738.12 in prevailing wage contributions was owed to the plan. On Dec. 12, 2012, Galstad remitted $38,500 to the plan; however, the remaining $198,238.12 remains outstanding.

Cargill and Galstad also failed to collect employer contributions owed to the plan from May 31, 2008, through May 31, 2010, resulting in a loss of $59,009.31 to the plan.

Resolution: The complaint seeks a judgment ordering Galstad and Cargill Heating & Air Conditioning Co. Inc. to: make good all losses to the plan, including lost opportunity costs, resulting from fiduciary breaches; correct the prohibited transactions; disgorge all ill-gotten gains; and to permanently enjoin them from serving as fiduciaries or service providers to any ERISA covered employee benefit plan.

Court: United States District Court, Western District of Wisconsin, Madison, Wis.

Docket Number: 3:14-cv-00228

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.

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.