Judge appoints independent fiduciary to distribute assets of Universal Custom Process Inc. 401(k) Plan in Toledo, Ohio

Date of Action: Aug. 4, 2014

Type of Action: Consent Order and Judgment

Names of Defendants: John W. Hufgard, Universal Custom Process Inc. 401(k) Retirement Plan 

Allegations: An investigation by the U.S. Department of Labor’s Employee Benefits Security Administration found that Hufgard, who was the sole named trustee of the Universal Custom Process Inc. 401(k) Retirement Plan in Toledo, Ohio, failed to administer the plan, distribute the assets to eligible participants and terminate the plan following Universal Custom Process Inc. incorporation being cancelled by the State of Ohio on April 2, 2009.

On Nov, 26, 2012, Hufgard pleaded guilty to three counts of income tax evasion and was sentenced to eighteen months in prison.  Hufgard is currently under supervised release.

As of Sept. 30, 2013, the plan has assets of $21,191.83 and 10 eligible participants.

Resolution: The judgment removes Hufgard as trustee to the Universal Custom Process Inc. 401(k) Retirement Plan and permanently enjoins him from serving as a fiduciary or service provider to any Employee Retirement Income Security Act covered plan in the future and from violating the provisions of ERISA. The court has appointed an independent fiduciary, Pension Administration & Consulting Services Inc. of West Chester, Ohio, to administer the plan, distribute the assets to eligible participants and terminate the plan upon completion.

Court: United States District Court for Northern District of Ohio

Docket Number: 5:14-cv-1456

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.