US Labor Department: Wellesley Business Owner Failed to Remit Withheld Employee Contributions

Richard Curtis Herring, of Wellesley, the owner of Central NY Weight Loss, LLC, reportedly violated the Employee Retirement Income Security Act by failing to remit withheld employee contributions to the plan for five pay periods between June 2012 and October 2013, resulting in a total of $8,646 due and owed to the plan.

Central NY Weight Loss, LLC was a Jenny Craig franchise with eight locations in New York State. The company established the Central NY Weight Loss LLC Employee Savings Retirement Plan and Trust in May 2012. The business ceased operations in January 2014.

According to a recent press release, the plan was funded by salary deferrals from employees’ paychecks which were to be remitted as contributions to participants’ plan accounts. Herring reportedly failed to carry out his responsibilities as plan trustee.

The Labor Department has secured a consent judgment and order requiring Herring to pay the $8,646 plus interest to the plan on a monthly basis and to submit monthly proofs of payment to EBSA. It also orders Herring to ensure that non-fiduciary plan participants receive their share consistent with their entitlements to these contributions plus interest and permanently enjoins Herring from future violations of the Employee Retirement Income Security Act.

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