Judgment orders fiduciaries to restore more than $59,000 to Connor Companies Health and Welfare Plan in Laona, Wisconsin

Date of Action: July 8, 2014

Type of Action: Consent Order and Judgment

Name of Defendant: Peter Connor, Gordon Connor, WD Flooring LLC, Nicolet Hardwoods Corporation and the Connor Companies Health and Welfare Benefit Plan

Allegations: On April 29, 2014, the U.S. Department of Labor filed suit against Peter Connor, Gordon Connor, WD Flooring LLC, Nicolet Hardwoods Corporation and Connor Companies Health and Welfare Benefit Plan, a self-funded health plan, in the U.S. District Court for the Eastern District of Wisconsin.

The suit alleged that from Jan. 1, 2009 to Dec. 31, 2010, after applying all payments that the Connor Companies had made to health plan service-providers, the Connor Companies Health and Welfare Benefit Plan incurred more than $300,000 in unpaid, adjudicated health claims. Additionally, the defendants did not establish and implement collection procedures to ensure that employer contributions were remitted to the Plan to pay the outstanding adjudicated claims, which currently total $59,102.03. The Connor Companies included WD Flooring LLC, Nicolet Hardwoods Corp., and Pine River Hardwoods, a company no longer in business. The three companies are jointly owned by Peter Connor and Gordon Connor.

Resolution: Under the terms of the consent order and judgment, the defendants are liable for restoring all losses owed to the Connor Companies Health and Welfare Plan. The order also permanently enjoins the defendants from violating ERISA in the future.

Court: U.S. District Court for the Eastern District of Wisconsin

Docket Number: 14-cv-00489

Employers and workers can reach Employee Benefits Security Administration 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.