The U.S. Department of Labor’sSecurity Agency has filed suit against the now defunct Wind Turbine Solutions. According to the suit, the Meyersdale, Pa. company and its owner opened a 401(k) for employees in 2011. The owner served as trustee for the plan as it collected more than $78,000 in employee contributions.
Then the company ceased operations in 2014.
The suit seeks to compel Smith to return the money to the plan, plus interest, and to bar Smith from ever administering a plan covered by the Employee Retirement Income Security Act.
Note: Employers invite the ill wind of investigation when they blow retirement plan assets on normal business or worse personal expenses. Retirement funds must be segregated from business and personal resources lest employers fan the flames of discontented regulators.