Federal court orders coal producer retirement plan trustees to pay $637K in restitution for unremitted contributions, unlawfully diverted funds

Summary:

The U.S. Department of Labor obtained a consent judgment and order requiring the trustees of Blackjewel LLC's 401(k) plan to pay $637,014 in equitable restitution. The Department's Employee Benefits Security Administration (EBSA) investigated and found that former executives, Jeffrey A. Hoops, Chief Executive Officer, Drew Kesler, Chief Financial Officer, and Donald P. Hetrick, Controller, failed to forward employee contributions and mandatory matching contributions to 401(k) retirement plan accounts, instead diverting them to pay company expenses. The court's action mandates that the trustees remit $435,519 in restitution to the plan and additional funds to cover missing employer contributions and costs. The judgment also permanently bars Hoops from serving as a trustee, fiduciary, advisor, or administrator to any employee benefit plan governed by ERISA and requires Kesler to take a remedial fiduciary standards course.