WASHINGTON – The U.S. Department of Labor has reached a settlement that provides for payment of more than $34 million to compensate employee benefit plans for losses suffered through investments in funds managed by Austin Capital Management, which indirectly invested in Bernard L. Madoff’s Ponzi scheme. The agreement follows an earlier settlement with Austin Capital’s parent company, KeyCorp, for more than $9 million. Recoveries from both settlements total more than $43 million for plan investors in funds managed by Austin Capital.      

Date of Action: Feb. 19, 2013

Type of Action: Default judgment

Names of Defendant: Keith Davis

WASHINGTON – The U.S. Department of Labor’s Employee Benefits Security Administration will host two free webcasts for small business owners on retirement savings plans as part of America Saves Week.

Date of Action: Feb. 15, 2013

Type of Action: Default judgment

Names of Defendant: Joseph A. Seher, Accucast Technology LLC 401(k) Plan and Accucast Technology LLC Health Plan

Allegations: Seher in his capacity as a fiduciary to the Accucast Technology LLC 401(k) Plan and Accucast Technology LLC Health Plan failed to ensure employee contributions were forwarded to the plan.

WASHINGTON – The U.S. Department of Labor has reached a settlement with the Cleveland-based Sherwin-Williams Co. that will provide $80 million to current and past participants of its Employee Stock Purchase and Savings Plan. The agreement is the result of an investigation by the department’s Employee Benefits Security Administration into whether Sherwin-Williams, seeking to take advantage of tax breaks, improperly managed the plan in violation of the Employee Retirement Income Security Act. The settlement also requires Illinois-based GreatBanc Trust Co.

Date of Action: April 18, 2013

Type of Action: Consent Order and Judgment

Name of Defendant: Odell Jones, III, individually and as a fiduciary to the Jomar Building Company Inc. 401(k) Plan and the Jomar Building Company Inc. Benefit Plan

NASHVILLE, Tenn. – The U.S. Department of Labor has filed a lawsuit in the U.S. District Court for the Middle District of Tennessee against Aaron Donald Vallett and his wholly-owned company, A.D. Vallett & Co. LLC, which provided third-party administrative services to a number of retirement plans in the Nashville area. The company also provided brokerage services and financial advice to a number of individual and corporate clients.

Date of Action: Jan. 31, 2013

Type of Action: Motions for Summary Judgment and Entry of Default Judgment

Names of Defendants: Richard Alan Schoenfeld and Tomco Auto Products, Inc.

Allegations: Plan fiduciaries improperly withdrew $197,000 from the plan in late 2004, and used the money to pay the financial obligations of Tomco Auto Products, Inc. Plan fiduciaries failed to repay $47,000 in principal plus $22,511.36 in lost earnings to the plan.

Date of Action: Feb. 1, 2013

Type of Action: Default judgment

Names of Defendants: Maximus Multimedia International LLC and Maximus Multimedia International LLC 401(k) Savings Plan in Peoria, Ill.

Date of Action: Feb. 4, 2013

Type of Action: Default judgment

Names of Defendants: Philip Oakes, Herb’s Carpet & Tile, Inc., and the Herb’s Carpet & Tile Savings Incentive Match Plan for Employees Individual Retirement Account Plan in Fremont, Newaygo County, Mich.

WASHINGTON — The U.S. Department of Labor today announced a settlement agreement with ING Life Insurance and Annuity Co. that provides for a $5.2 million payment to certain retirement plan clients adversely affected by its undisclosed practice of keeping investment gains achieved when the company failed to process requested transactions in a timely manner.

The department alleged that ILIAC's failure to disclose its policy on reconciling transaction processing errors to retirement plan clients was a violation of the Employee Retirement Income Security Act.

Date of Action: January 25, 2013

Type of Action: Complaint

Name(s) of Defendant(s): Keith Vinson and Tradition, LLC

WASHINGTON – The U.S. Department of Labor's Advisory Council on Employee Welfare and Pension Benefit Plans, also known as the ERISA Advisory Council, will hold its 165th public meeting March 1.

The meeting will take place at department headquarters, 200 Constitution Ave. NW, Suite C-5521 Room 4, Washington, D.C. 20210. It will run from 1:30 p.m. to approximately 4:30 p.m. EST.

Date of Action: Jan. 29, 2013

Type of Action: Default judgment

Names of Defendant: Gautam Gupta, Gautam Gupta, M.D., doing business as, Nutrition Clinic 401(k) Plan

NEW YORK – The U.S. Department of Labor has filed suit in the U.S. District Court for the Eastern District of New York seeking the appointment of an independent fiduciary to manage the 401(k) plan of defunct Windswept Environmental Group Inc. of Holtsville, N.Y.

Date of Action: Jan. 25, 2013

Type of Action: Default judgment

Names of Defendant:Tannile Elizabeth Ortiz, a fiduciary to the Spencer & Associates LLC Profit Sharing and 401(k) Plan

WASHINGTON – The U.S. Department of Labor’s Employee Benefits Security Administration today announced technical updates to its Delinquent Filer Voluntary Compliance Program.

The Employee Retirement Income Security Act requires most private-sector plans to file an annual return/report of employee benefit plan. This is usually the Form 5500 or, for certain small plans, Form 5500-SF. Plan administrators who fail or refuse to comply with ERISA’s annual filing requirement may incur significant monetary penalties.

Date of Action: Jan. 18, 2013

Type of Action: Consent judgment

Name(s) of Defendant(s): Towson Rehabilitation LLC, chief executive officer Howard Neels, and the Towson Rehabilitation 401(k) plan

Allegations: Since January 2006, the defendants failed to remit employee contributions to the plan, remitted certain employee contributions late without interest, and failed to segregate the plan's assets from the general assets of the company.

Date of Action: Jan. 22, 2013

Type of Action: Default judgment

Name(s) of Defendant(s): Gary L. Merritt, as fiduciary to the Bemcore Inc. Incentive Plan, Bemcore, Inc. and Bemcore, Inc. Incentive Plan in Dayton, Ohio

Date of Action: Jan. 17, 2013

Type of Action: Complaint

Name(s) of Defendant(s): Tripp Mechanical Services, Jarvis Edward Tripp, Jr., and Gina Tripp