Indiana Business Owner Sentenced After U.S. Labor Department Investigation Finds Deception in Administration of Employees’ Benefit Plan

BRAZIL, IN – After an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), Clay County, Indiana, Circuit Court Judge Robert Pell has sentenced Larry Morse – the owner of Western Indiana Logistics Inc. in Brazil, Indiana – to a suspended term of 180 days incarceration and 180 days probation.

Morse pleaded guilty to one misdemeanor count of deception.

EBSA’s investigation found Morse – sole fiduciary of Western Indiana Logistics Inc. SIMPLE IRA Plan – failed to remit employees’ voluntary pay contributions to the plan from June 14, 2013, through June 28, 2013, and again from June 6, 2014, through July 18, 2016. In total, $14,638 in participant contributions was withheld from three employees’ pay, and not remitted to the plan at Morse’s direction. 

“Criminal acts like this directly impact participants in employee benefit plans by compromising their hard-earned benefits and erode confidence in those chosen to manage their trust,” said Employee Benefits Security Administration Regional Director L. Joe Rivers, in Cincinnati, Ohio. “The U.S. Department of Labor’s Employee Benefits Security Administration is committed to ensuring the integrity of employee benefit programs and prosecuting those that fail to comply with the law.”

The investigation also determined that Western Indiana Logistics Inc. failed to make the required 3 percent employer matching contribution payments to the benefit plan for years 2013 through 2016, totaling $13,857.32. After being contacted by EBSA, Morse has since remitted all participant withholdings, all required employer contributions and lost opportunity costs. Pursuant to the plea agreement, Morse is barred from ever serving as a fiduciary in the future.

Clay County, Indiana, Chief Deputy Prosecutor Zach Clapp prosecuted the case.

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/agencies/ebsa.

EBSA’s mission is to assure the security of the retirement, health and other workplace related benefits of America’s workers and their families. EBSA accomplishes this mission by developing effective regulations; assisting and educating workers, plan sponsors, fiduciaries and service providers; and vigorously enforcing the law. 

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

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Clay County Circuit Court Case 311D01-2001-FD-000036