Date of Action: June 24, 2015 Type of Action: Filing of a Complaint in the U.S. District Court for the Northern District of Ohio Names of Defendants: Applied Technology Systems Inc., Clark W. Hayes, Applied Technology Systems, Inc. Retirement Plan Allegations: An investigation by the U.S. Department of Labor’s Employee Benefits Security Administration found that Applied Technology Systems, Inc. and Clark W. Hayes, fiduciaries to the Applied Technology Systems, Inc. Retirement Plan, violated the Employee Retirement Income Security Act.
Investigators found that, at the behest of Hayes, the plan’s custodian, Fidelity Management & Research Company, transferred $210,662.18 in Plan assets to a Charter One Bank account in the name of ATSI, or Applied Technology Systems Inc. Hayes, as the sole signatory of that account, withdrew $98,581.75, from the account between Jan. 17, 2014, and Feb. 14, 2014. The funds were used for personal, non-plan purposes.
Resolution: The complaint seeks a judgment ordering Hayes and Applied Technology Systems Inc. to make good to the Applied Technology Systems Inc. Retirement Plan any losses, including lost opportunity costs, and correct the prohibited transactions resulting from fiduciary breaches committed.
Court: Northern District of Ohio, Cleveland, Ohio Docket Number: 5:15-cv-01264-JRA Employers and workers can reach EBSA toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans. Additional information can be found at www.dol.gov/ebsa.
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