US Labor Department files lawsuit to restore funds owed to Demmy Sand & Gravel Retirement Savings Plan

Date of Action: May 23, 2016

Type of Action: Employee Retirement Income Security Act Lawsuit

Names of Defendants: Amy Demmy Rapp, Demmy Sand & Gravel LLC, Demmy Sand & Gravel LLC Retirement Savings Plan

Allegations: An investigation by the U.S. Department of Labor’s Employee Benefits Security Administration found that Demmy Sand & Gravel LLC, based in Springfield, Ohio, and Amy Demmy Rapp, fiduciaries to the Demmy Sand & Gravel LLC Retirement Savings Plan, violated the Employee Retirement Income Security Act.

Investigators found that Rapp failed to remit $2,409.65 in employee contributions and $32,883.34 in participant loan repayments to the plan in 2013. In addition, Rapp failed to remit $264,750.36 in prevailing wage contributions to the plan from January 2011 through May 2013. Those funds were not forwarded to the retirement plan but retain in the company’s general assets and used for non-plan purposes in violation of ERISA. Demmy Sand & Gravel ceased operations in 2015.

As of Jan. 6, 2016, the Plan had 17 participants and assets totaling $166,867.40.

Resolution: The complaint seeks a judgment:

• Enjoining Rapp and Demmy Sand & Gravel from violating ERISA or serving as fiduciaries or service providers to any ERISA covered plans.
• Ordering Rapp to pay all funds owed to the plan with interest.
• Appointment of an independent fiduciary to administer the plan.

Court: United States District Court for the Southern District of Ohio, Cincinnati, Ohio

Docket Number: 1:16-cv-00567-SJD

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