US Labor Department files lawsuit to recover $31K in missing plan assets from TSPA Holding Inc. in Austin, Texas

Date of Action:  Jan. 8, 2016

Type of Action: U.S. Department of Labor filed a lawsuit against TSPA Holding Inc. in Austin, Texas, and its owner to recover $31,000 in missing retirement funds affecting three employees.

Name(s) of Defendant: TSPA Holding Inc., Derlis “Trey” Salinas, and TSPA Holding Inc. 401(k) Profit Sharing Plan.

Allegations: An investigation by the Labor Department’s Employment Benefits Security Administration revealed that beginning July 2011, TSPA Holding Inc. and Derlis Salinas began withholding employee contributions but failed to remit those contributions and mandatory employer matching contributions to the 401(k) Plan accounts of the company’s employees.

Resolution: The Labor Department seeks a court order requiring the restoration of all plan losses and barring Derlis Salinas 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 EBSA’s Dallas Regional Office, 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.

Court: U.S. District Court for the Western District of Texas, Austin Division

Docket Number: 1:16-CV-00013