Projo 7 to 7 News Blog

WARWICK, R.I. -- The U.S. Department of Labor has sued George Russell, trustee of the 401(k) plan for Referral Mortgage Inc., of Warwick, for failing to remit to the plan contributions and loan repayments that had been withheld from employee paychecks. Referral Mortgage ceased operations in 2006.

The Labor Department lawsuit alleges that Russell failed to receive and collect employee contributions of $18,004 and loan repayments of $585 and ensure they were forwarded to the plan in 2005 and 2006.

"The withheld funds were used to benefit the company, which was the plan sponsor, rather than the employees who were the plan's participants," said Jean Ackerman, regional director for the Labor Department's Employee Benefits Security Administration.

The lawsuit, filed in U.S. District Court, seeks to require Russell to restore any losses.to the 401(k) plan, plus interest, that resulted from his actions.

 Tags  George Russell Referral Mortgage U.S. Department of Labor Warwick RI

Comments

401k Rollover School said:

It will be interesting to see what happens in this case.

Link | October 29, 2009 4:51 PM
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