Court orders $3,900 restored to IRA at former Holden firm
The Obama administration has secured nearly $4,000 for a retirement plan at a former Holden firm from a federal court.
According to a statement from the Labor Department, a Simple IRA plan at Holden Sand and Gravel was established in 2005 to provide retirement benefits for employees. The plan was managed by Joseph Montalto, president, treasurer, and owner of the company. An investigation by the Employee Benefits Security Administration found that the company and Montalto violated their fiduciary responsibilities in connection with the IRA. Specifically, the government charged that Montalto stopped forwarding employee contributions to the plan, and the company failed to forward $3,900 in withheld employee contributions to the plan.
Holden Sand and Gravel ceased operations in 2008. The Labor Department filed suit in October 2014.
U.S. District Court in Massachusetts approved a consent judgment and order requiring Montalto to restore $3,900 to the plan, the Labor Department said. The judgment also appointed Northeast Retirement Services of Woburn as independent fiduciary to administer the plan and properly distribute its assets to participants and their beneficiaries, according to the Labor Department.
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