U.S. Department of Labor files complaint to restore losses to SGH Communications Inc. SIMPLE IRA Plan in Lakeville, Minn.

Date of Action: Feb. 24, 2015

Type of Action: Complaint

Names of Defendant: Jean Hanvik, SGH Communications Inc., SGH Communications Inc. SIMPLE IRA Plan

Allegations: From at least Aug. 8, 2005 to April 26, 2012, Jean Hanvik was the sole owner of SGH Communications in Lakeville, Minnesota. SGH Communications Inc. was the plan administrator for the SGH Communications Inc. SIMPLE IRA Plan.

During the period from Aug. 12, 2011, to April 26, 2012, SGH Communications withheld $15,807.68 from an employee’s pay in salary deferral contributions intended for the SGH Communications Inc. SIMPLE IRA Plan and retained the funds in the company’s general operating account.  To date $9,377.48 of those funds have not been remitted to the plan.

Further, during the period from at least Jan. 14, 2011, to April 26, 2012, SGH Communications failed to timely remit an employee’s salary deferral contributions intended for the Plan and retained these monies in its general operating account until they were remitted.

These actions are violations of the Employee Retirement Income Security Act.

Resolution: The complaint asks the court to order Hanvik and the company to correct all prohibited transactions and fiduciary breaches for which they are liable and to restore all losses to the SGH Communications Inc. SIMPLE IRA Plan, including lost opportunity costs.

It also seeks to permanently enjoin Hanvik and the company from serving as fiduciaries or service providers to any ERISA-covered employee benefit plan and remove them from any positions they now hold as fiduciaries.

Employers and workers can reach EBSA toll-free at 866-444-3272 for help with problems relating to private-sector retirement and health plans.  Additional information can be found at www.dol.gov/ebsa.

Court: United States District Court for the District of Minnesota, Minneapolis
Docket Number: 15-cv-00577

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