US Labor Department obtains judgment, order to remove fiduciary from $2.2M employee savings plan and trust in Ashland, Kentucky

Date of Action: July 26, 2016

Type of Action: Consent judgment and order

Defendant: Horizon NR LLC, Lance Sogan, Horizon NR Employee Savings Plan and Trust

Allegations: The U.S. Department of Labor’s Employee Benefits Security Administration filed a complaint on March 7, 2016, against Horizon NR LLC and Lance Sogan in Ashland, Kentucky. Sogan, the alleged fiduciary to the Horizon NR LLC Employee Savings Plan and Trust, waived his response to the complaint and entered into a consent order and judgment with the court.

Background: Involved in the coal mining industry, Horizon NR LLC ceased operations on Sept. 28, 2004, but the defendant never terminated the plan. As of September 2015, the plan had 144 participants and $2,296,818 in plan assets being held by Fidelity Management Trust Co. The defendant’s failure to administer the plan caused the plan’s assets not to be properly distributed to participants or their beneficiaries. Some plan beneficiaries have been unable to collect money from their account. 

Resolution: The consent order and judgment removes Sogan as an authorized signer for the plan and appoints Lefoldt & Co., P.A. as an independent fiduciary. Lefoldt & Co., P.A will administer the plan, distribute the assets to participants and beneficiaries and have the responsibility to terminate the plan.

Court: U.S. District Court for the Eastern District of Kentucky

Docket Number: 0:16-cv-00030-HRW

Employers and workers can contact 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/.