Bullock Cannot Save ERISA Fiduciary, a Sole Corporate Shareholder Whose Company Failed To Make Multiemployer Fund Contributions, From Being Unable To Discharge His Liability Through Personal Bankruptcy.

Article Found On: Benefits Link   Written By: Ron Kramer & Chris Busey

Fiduciaries who breach their duties may pay the consequences far longer than they may think, for they may not even be able to escape liability through personal bankruptcy.  In Raso v. Fahey (In re Fahey), No. 11-1118 (June 11, 2013), the U.S Bankruptcy Court for the District of Massachusetts became the first court to apply the new defalcation guidelines laid down by the Supreme Court in Bullock v. BankChampaign, NA, 133 S. Ct. 1754 (2013), to an ERISA fiduciary, finding that a debtor who breached his fiduciary duties with regard to contributions to his company’s multiemployer funds could not discharge his fiduciary liability in bankruptcy because he had engaged in “defalcation.”

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