CINCINNATI, Ohio (Legal Newsline) — The U.S. Department of Labor has announced it has filed a lawsuit against Amy Demmy Rap, Demmy Sand & Gravel LLC and Demmy Sand & Gravel LLC Retirement Savings Plan after allegations the defendants violated the Employee Retirement Income Security Act (ERISA).
According to the allegations, Rapp failed to remit $2,409.65 in employee contributions and $32,883.34 in participant loan repayments to the plan in 2013. From January 2011 to May 2013, Rapp also allegedly failed to remit $264,750.36 in prevailing wage contributions to the plan.
The department believes the funds were not forwarded to the retirement plan but, instead, retained in the company’s general assets and used for non-plan purposes. These alleged actions violate the ERISA.
The complaint seeks to enjoin the defendants from violating ERISA, force the defendants to pay all funds owed to the plan with interest, and appoint an independent fiduciary to administer the plan.
The plan had 17 participants and assets of close to $170,000 as of Jan. 6.