US Labor Department files suit to restore more than $500,000 to Maryland retirement plan

Date of Action: Jan.7, 2015

Type of Action: Complaint

Name(s) of Defendant(s): Nathan Williams, NW Systems Inc., and NW Systems Inc. 401(k) Profit-Sharing Plan and Trust

Allegations: Based on an investigation conducted by the U.S. Department of Labor’s Employee Benefits Security Administration, the Secretary of Labor filed a complaint alleging the following:

NW Systems Inc. established the plan in 1999 to provide benefits to its employees in the event of retirement, death or disability, as well as upon termination of employment. The plan was funded by elective employee contributions and employer contributions. From 2009 through December 2012, the defendants violated the Employee Retirement Income Security Act of 1974 by failing to remit at least $500,000 in employee and employer contributions to the plan. In February 2013, the department previously filed suit to remove the plan trustee. In that action, the trustee was removed and an independent fiduciary was appointed.

Resolution: The complaint seeks to have the defendants ordered to restore all losses to the plan and permanently enjoin Nathan Williams from acting directly or indirectly, in any fiduciary capacity, with respect to any employee benefit plan subject to ERISA.

Court: United States District Court for the District of Maryland

Docket Number: 8:15-cv-00056-GJH

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