SeaBoard Management Inc., a company based in Stevenson,
Maryland, is facing a court challenge from the Department of Labor’s (DOL)
Employee Benefit Security Administration (EBSA) for breaching the Employee
Retirement Income Security Act (ERISA).
According to EBSA, the SeaBoard Management money purchase
plan trustees Larry Porter and Susan Porter breached their fiduciary duties to
the plan by failing to take action to recover funds owed to the plan, which
were loaned in violation of ERISA. To date, principal and interest owed to the
plan on this loan is approximately $332,544, according to EBSA.
“The trustees failed to take action to recover funds owed to
the plan that were loaned to Waskey Investments, a real estate partnership in
which Larry Porter owned a 50% share, in violation of the Employee Retirement
Income Security Act,” the complaint states. “To date, principal and interest
owed to the plan on this loan is approximately $423,486.”
EBSA is asking the U.S. District Court for the District of
Maryland to restore all related losses, including interest or lost opportunity
costs to the plan, which occurred as a result of the defendants’ breach of their
fiduciary obligations. Further, EBSA wants to permanently enjoin Larry Porter
and Susan Porter from serving as a fiduciary, administrator, officer, trustee,
custodian, agent, employee, representative, or having control over the assets
of any employee benefit plan subject to the ERISA—and to appoint an independent
fiduciary at the Porters’ expense.
The text of the complaint is available for download here.