The opinion of the court was delivered by: John A. Kronstadt United States District Judge
CONSENT JUDGMENT & ORDER BETWEEN HILDA SOLIS, SECRETARY OF LABOR, AND SHANNON LESLIE STUART JS-6
Plaintiff Hilda L. Solis, Secretary of Labor, United States Department of Labor ("Secretary"), brought this action against S.J. Burkhardt, Inc., a corporation; S.J. & B. Group, Inc., a corporation; Shannon Leslie Stuart ("Stuart"), an individual; and the SJB 401(k) Plan, formerly known as the SJB Money Purchase Pension Plan ("Plan").*fn1 The Court entered default judgment on November 2, 2012 against S.J. Burkhardt, Inc. and S.J. & B. Group, Inc.
A. The Secretary and Stuart (collectively, "the parties") admit that the Court has jurisdiction over this action pursuant to ERISA § 502(e)(1), 29 U.S.C. §1132(e)(1), and that venue lies in the United States District Court, Central District of California pursuant to ERISA § 502(e)(2), 29 U.S.C. § 1132(e)(2).
B. The parties agree to the entry of this Consent Judgment & Order. The parties further agree that this Consent Judgment & Order Between Hilda Solis, Secretary of Labor, and Shannon Leslie Stuart ("Consent Judgment & Order") shall fully settle all claims of the Secretary asserted in the Complaint.
C. Stuart neither admits nor denies the allegations made in the Secretary's Complaint filed in this matter.
D. The parties expressly waive Findings of Fact and Conclusions of Law. IT IS HEREBY ORDERED, ADJUDGED, and DECREED that:
1. Stuart affirms he did not participate in the Plan and, therefore, has no interest in any amounts to be distributed by the Independent Fiduciary as a result of this Consent Judgment & Order.
2. Stuart is hereby permanently enjoined from violating the provisions of Title I of ERISA.
3. Stuart is hereby removed as a fiduciary of the Plan and shall be enjoined from serving as a fiduciary of, or service provider to, any ERISA-covered employee benefit plan.
4. Stuart is enjoined from causing any assets to be removed from any account holdings assets of the Plan. Within seven days of entry, the Secretary shall serve a copy of this Consent Judgment & Order on the custodian of the assets of the Plan and such custodian shall refrain from distributing Plan assets until receiving further instructions from the Independent Fiduciary appointed by this Court.
5. The Court appoints Lefoldt & Co., P.A., of Ridgeland, MS, as an Independent Fiduciary with discretionary authority over the administration and management of the Plan, with all the rights, duties, discretion, and responsibilities of a trustee, fiduciary, and Plan Administrator under ERISA ("Independent Fiduciary").
6. The Independent Fiduciary shall have the following duties and responsibilities:
a. The Independent Fiduciary's responsibilities shall include, but shall not be limited to, establishment or continuation of trust accounts for the benefit of the Plan's participants and beneficiaries, communication with participants regarding their account disbursement options, collection of any necessary information from those persons or entities in custody of such information;
b. The Independent Fiduciary shall collect, marshal, allocate, distribute and otherwise pay out all of the assets of the Plan (in all Plan accounts, including forfeiture and suspense accounts) and take further action with respect to the Plan as appropriate, including terminating the Plan when all of ...