Date of Action: Aug. 30, 2023
Type of Action: Employee Retirement Income Security Act complaint filing
Company/Owners: Virtual Matrix Corp.
Suman Thotakura
Virtual Matrix 401(k) Profit Sharing Plan
Background: The Secretary of Labor filed a lawsuit on Aug. 30, 2023, after the department’s Employee Benefits Security Administration found the Edina, Minnesota, technology consulting company and its CEO Suman Thotakura failed to remit $45,972 in employees’ voluntary salary contributions and $759 in participant loan repayments to the Virtual Matrix 401(k) Profit Sharing Plan from April 1, 2021 to Oct. 31, 2022, a violation of the Employee Retirement Income Security Act.
Resolution: Filed in the U.S. District Court of Minnesota, the complaint seeks to make the plan whole and permanently ban the company and its CEO from serving or acting as fiduciaries or service providers to any other ERISA-covered employee benefit plan and to remove them from fiduciary positions they now hold.