The Department of Labor (DOL) Employee Benefit security Administered has filed a lawsuit in Federal District Court for the Southern District of New York against Velo Corp. of America for breaches of fiduciary duty under ERISA.
Velo Corp. is the named owner and operator of Quik Trak, a New York City area courier and bike messenger service. EBSA claims that the plan sponsor and trustees breached their fiduciary duties, by committing prohibited transitions and engaging in self-dealing. EBSA claims that the defendants failed to remit all employee contributions to workers’ accounts from January 2016 onward; allowed contributions to remain unsegregated in Velo’s bank accounts; and failed to ensure that all employer matching contributions for employees were made to the plan.
From experience, the DOL works very slowly and quietly, this must have been after months and months of the EBSA investigator, getting no answers as to the whereabouts of the missing contributions.
