Settlement reached with defunct Dadeville company

From Staff Reports

Published Wednesday, July 1, 2009

ATLANTA – The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) has obtained a consent judgment and settlement agreement requiring restoration of more than $10,000 to the pension plan of defunct Professional Employee Leasing Inc. of Dadeville.

The order, issued by the U.S. District Court for the Middle District of Alabama, requires the defunct company and Judy Sims to restore $10,183 to the plan plus pay a civil penalty of $2,036. In addition, the defendants have agreed to reimburse the plan for the fees and expenses of the successor fiduciary, Larry Lefoldt. As part of the settlement, Judy Sims has agreed to be permanently barred from serving as a fiduciary to any employee benefit plan subject to the Employee Retirement Income Security Act (ERISA) in the future.

“We are pleased to be able to provide a conclusion to this case so the plan participants can access their accounts,” said R.C. Marshall, regional administrator for EBSA in Atlanta.

A 2008 lawsuit filed by the Labor Department alleged that Louie Sims, the owner of the former company, and his wife, Judy Sims, received contributions from client employers but failed to hold those contributions for the plan. In addition, the defendant provided to the plan’s third party administrator false documents making it appear that individual participant accounts had the correct balances. In March 2007, Judy Sims pleaded guilty in federal district court to one count of making a false statement in a document required by ERISA.

Employers with similar problems who are not yet subjects of EBSA investigations may be eligible to participate in the department’s Voluntary Fiduciary Correction Program. Participation requires employers to make workers whole but allows them to avoid EBSA enforcement actions and civil penalties as well as any applicable excise taxes.

In fiscal year 2008, EBSA achieved monetary results of $1.2 billion related to pension, 401(k), health and other benefits for millions of American workers and their families. Employers and workers can reach EBSA’s Atlanta Regional Office at 404-302-3900 or toll-free at 866-444-3272 for help with problems relating to private sector retirement and health plans.

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