A Pittsburgh-area CEO must replace money he withdrew or failed to pay into his employee’s 401(k) plan.
The U.S. District Court for Western Pennsylvania has ordered Kevin T. Weir, chief executive officer of Liberty-Pittsburgh Inc., to repay $67,138 to the fund.
The settlement resulted from an investigation by the U.S. Department of Labor’sSecurity Administration (EBSA). Federal investigators found that Weir and the company failed to remit employee contributions and loan repayments to the fund in a timely manner. Plus, when Weir did make late contributions, he failed to pay two years’ worth of interest.
EBSA alleged that Weir and his company violated the Employee Retirement Income Security Act.
Note: Employers can’t use employees’ 401(k) plans as informal savings accounts that can be tapped to fund business activities. The law requires employers to meet their contractual obligations and faithfully deposit employee contributions.