Trustee sued for retirement plan contributions

BOSTON – The U.S. Department of Labor says it has sued David Sisti, the named trustee of the Equity Concepts Inc. Profit Sharing and 401(k) Plan of Cranston, for failing to place employee contributions into the retirement plan.
Equity Concepts Inc. is an independent mortgage firm that closed in 2008 and is under voluntary receivership in Superior Court, Department of Labor said.
The lawsuit, filed in U.S. District Court in Providence, alleged Sisti, who in an online profile identifies himself as the former president of Equity Concepts, failed to receive and collect employee contributions and forward them to the retirement plan account between August 2007 and February 2008.
The Department of Labor said Sisti also allegedly failed to forward to the plan $5,387 in employee contributions that were withheld from employee paychecks.
“The withheld funds were used to benefit the company, rather than the employees, who trusted that their hard-earned retirement savings would be secure,” said Edward Maloney, acting regional director for the Labor Departments’ Employee Benefits Security Administration in Boston. “The law specifically requires that plan funds be held in trust and used only for the benefit of participants and their beneficiaries.”
Federal labor officials say they want Sisti to undo any prohibited transactions and return all losses, plus interest, resulting from alleged breaches in his fiduciary responsibilities. The department also seeks a court order barring Sisti from serving in a fiduciary role to any plan covered by the Employee Retirement Income Security Act.

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