Date of Action: Dec. 21, 2016
Type of Action: Complaint
Name(s) of Defendant(s): Larry Porter, Susan Porter, SeaBoard Management LLC, SeaBoard Management Inc., and SeaBoard Management Inc. Money Purchase Plan
Allegations: Based on an investigation conducted by the U.S. Department of Labor’s Employee Benefits Security Administration, the U.S. Secretary of Labor filed a complaint alleging that:
- On March 1, 1985, SeaBoard Management Inc., a company based in Stevenson, Maryland, established a Money Purchase retirement plan for its employees.
- 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 to the company in violation of ERISA. To date, principal and interest owed to the plan on this loan is approximately $332,544.
- 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 percent share, in violation of the Employee Retirement Income Security Act. To date, principal and interest owed to the plan on this loan is approximately $423,486.
Proposed Resolution: The Department is asking the court to:
- Order the defendants to restore all losses, including interest or lost opportunity costs to the plan, which occurred as a result of the defendants’ breach of their fiduciary obligations.
- 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.
- Appoint an independent fiduciary at the Porters’ expense.
Court: U.S. District Court for the District of Maryland
Docket Number: 1:16-cv-04054-ELH