Press Release

Federal Court Orders 401(k) Plan Fiduciaries to Make Immediate Payments to Restore $11k Software Company Employees' Retirement Fund

Issued by Employee Benefits Security Administration [EBSA], U.S. Department of Labor

Aug. 7, 2023

Date of Action:  July 20, 2023

Type of Action:  Order requiring immediate compliance

Company/Trustees:  Owen Software Development Co. Ltd., Adeboyejo Oni, CEO and Trustee, Babatunde Ogunnaike, Chief Financial Officer and Trustee

Background: Judge Paula Xinis of the U.S. District Court for the District in Maryland has ordered Babatunde Ogunnaike and Adeboyejo Oni, fiduciaries of the Owen Software Development Co. Ltd 401(k) plan, to make immediate payments after they failed to comply with a March 2023 consent judgment obtained by the U.S. Department of Labor. The judgment required them to restore $11,130 in missing contributions, interest and penalties to the plan. If Ogunnaike and Oni fail to comply with the order, the court may find them in civil contempt unless the employers show good cause.

In April 2022, the department filed suit after an investigation by its Employee Benefits Security Administration determined the Rockville, Maryland company and other plan fiduciaries did not make certain that employee contributions were forwarded to the plan in a timely manner between 2017 and 2018. Senior trial attorneys Alejandro Herrera and Elizabeth Kuschel litigated the action on the department’s behalf.

Resolution: The defendants are required to restore the full amount to the 401(k) plan by Sept. 18, 2023.

Quote: “Failing to forward required contributions to employee retirement plans in a timely manner violates employees’ trust and denies workers the opportunity to earn interest on their investments and prepare for their future,” said Acting Employee Benefit Security Administration Regional Director Norman Jackson in Philadelphia.

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