US Labor Department sues Rochester, New York, investment advisor and plan administrator to recover losses suffered as result of fiduciary breaches

Date of Action: January 8, 2015

Type of Action: Complaint and Consent Judgment and Order

Names of Defendants: Richard Curtis Herring.

Allegations: Richard Curtis Herring, of Wellesley, Massachusetts, was the owner of Central NY Weight Loss, LLC, a Jenny Craig franchise with eight locations in New York State. The company established the Central NY Weight Loss LLC Employee Savings Retirement Plan and Trust in May 2012. The plan was funded by salary deferrals from employees' paychecks which were to be remitted as contributions to participants' plan accounts. Herring, as plan trustee, was solely responsible for remitting any and all monies and other property due the plan, including contributions, and for properly managing the plan's assets. The business ceased operations in January 2014.

An investigation by the U.S. Department of Labor's Employee Benefits Security Administration found that Herring violated the Employee Retirement Income Security Act by failing to remit withheld employee contributions to the plan for five pay periods between June 2012 and October 2013, resulting in a total of $8,646 due and owed to the plan.

Resolution: The Labor Department has secured a consent judgment and order requiring Herring to pay the $8,646 plus interest to the plan on a monthly basis and to submit monthly proofs of payment to EBSA. It also orders Herring to ensure that non-fiduciary plan participants receive their share consistent with their entitlements to these contributions plus interest and permanently enjoins Herring from future violations of the Employee Retirement Income Security Act.

Court: U.S. District Court for the District of Massachusetts.

Docket Number: 1:15-cv-10034-NMG