Liverpool, N.Y. — The owner of a former Liverpool-based Jenny Craig weight loss franchise has been ordered to pay back money he collected from his employees but never put into their retirement accounts.

In a consent judgment filed in U.S. District Court in Boston on Jan. 8, Richard C. Herring, of Wellesley, Mass., was ordered to pay the $8,646 that he withheld from the pay of 26 employees as contributions to their company retirement plan accounts. He also must pay interest on the funds.

In a complaint filed along with the consent judgment, the U.S. Labor Department said Herring, owner of Central NY Weight Loss LLC, withheld the money from five pay periods between June 2012 and October 2013.

The money was supposed to be deposited in the workers' retirement accounts in the company's Employee Savings Retirement Plan and Trust, which was established in May 2012. However, it was never put into the accounts, the Labor Department said.

Herring's failure to put the money into the employees' retirement accounts was a violation of the federal Employee Retirement Income Security Act, the department said.

As the retirement plan's trustee, Herring was solely responsible for depositing the employees' contributions to their accounts, the department said.

Herring's franchise had its headquarters in Liverpool and operated in Fayetteville, Rochester, Albany, Latham, Penfield, Henrietta, Orchard Park and Williamsville.

The franchise ceased operations in January of 2014. Herring filed personal bankruptcy in May of 2014. However, under an agreement with the Labor Department, he was not allowed to have the debt he owed to his former employees discharged.

According to the consent judgment, Herring is required to pay the $8,646, plus interest, to the retirement plan in 24 monthly payments. The judgment also requires him to pay a 20 percent penalty, or $1,729, on the amount, unless he seeks and is granted a waiver by the secretary of labor.

The department said anyone with questions or concerns about their retirement benefit plans can contact the Employee Benefits Security Administration at (866) 444-3272. They can also contact EBSA online at http://www.dol.gov/ebsa/contactEBSA/consumerassistance.html.

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