A court in Ohio has ordered Markham Machine Co. Inc. and its owner, James Markham, to pay back over $134,000 to their company retirement plan after breaking federal law. The U.S. Department of Labor brought the case, pointing out that the company failed to forward employee contributions and loan repayments meant for the retirement plan over four years. This action violated the Employee Retirement Income Security Act (ERISA).
The U.S. District Court for the Northern District of Ohio issued a default judgment requiring the full restoration of all losses to the retirement plan. This includes the missing contributions, loan repayments, and lost earnings, adding up to $134,292. To cover part of this amount, the court has allowed Markham’s personal retirement account with the company to be used.
In addition, the court has permanently banned Markham and his company from acting as fiduciaries or service providers for any ERISA-covered employee benefit plans in the future. The court also removed them from managing the current retirement plan.
To take over the administration and winding down of the retirement plan, the court appointed AMI Benefit Plan Administrators Inc. as the new independent fiduciary. This move aims to protect the interests of the employees and ensure the plan is handled properly going forward.
This case highlights the importance of companies handling employee retirement funds responsibly and following the law. The Department of Labor remains active in enforcing these protections to safeguard workers’ benefits.