US Labor Department files lawsuit to recover $126K in missing plan assets from defunct Michelson Energy Co. in San Antonio

Date of Action: July 11, 2015

Type of Action: The U.S. Department of Labor filed a lawsuit against Michelson Energy Co. and three defendants in connection with the Michelson Energy Co. 401(k) and Profit Sharing Plan to recover $126,000 in missing retirement funds affecting 26 workers.

Name(s) of Defendant: Michael Michelson, who co-owned the now defunct San Antonio-based oil and gas company, Robert Fannin, and Barry DeWitt had fiduciary responsibilities over the plan and violated the Employee Retirement Income Security Act of 1974.

Allegations: An investigation by the Labor Department's Employee Benefits Security Administration revealed that beginning July 2009, Michelson, Fannin and DeWitt failed to remit contributions and loan payments withheld from employee paychecks to the plan either timely or at all.

Resolution: The Labor Department seeks a court order requiring the restoration of all plan losses and barring Michelson, Fannin and DeWitt from serving as a fiduciary to any other employee benefit plan.

Quote: "The fiduciaries had a duty to manage and protect the employees' benefit plans and their assets, yet they failed to do so," said Deborah Perry, director of the Dallas Regional Office of the department's Employee Benefits Security Administration, which investigated this case. "The department will take every action necessary to restore plan assets that were not properly preserved for the company's workers."

Information: Employers and workers can reach EBSA's Dallas office at 972-850-4500 or toll-free at 866-444-3272 for help with problems relating to private-sector retirement and health plans. Additional information can be found at http://www.dol.gov/ebsa/.

Court: U.S. District Court for the Western District of Texas

Docket Number: 5:15-cv-00573