Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_99-cv-01941/USCOURTS-caed-2_99-cv-01941-0/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 15:78m(a) Securities Exchange Act

---

_______________________________________________ 

[Proposed] Order for Disbursement of Registry Funds 

 [CIV -S-01-2211 LKK PAN] 

- 1 - 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

MICHAEL SCHLOSS, Senior Trial Attorney 

Calif. State Bar No. 134124 

Office of the Solicitor 

Plan Benefits Security Division 

United States Department of Labor 

Post Office Box No. 1914 

Washington, D.C. 20013 

Telephone: (202) 693-5586 

Facsimile: (202) 693-5610 

Attorney for the Plaintiff 

ELAINE L. CHAO, SECRETARY OF LABOR 

UNITED STATES DEPARTMENT OF LABOR 

THE UNITED STATES DISTRICT COURT FOR THE 

EASTERN DISTRICT OF CALIFORNIA 

THE HON. CHARLES B. RENFREW (RET.), in 

his Capacity as Trustee of the Toms Sierra 

Company, Inc. Employee Stock Ownership Plan 

and Trust, and DON SWEET, CLAUDETTE 

HORVATH, and DAVID WATSON, on behalf of 

themselves, and other persons similarly situated, 

Plaintiffs, 

v. 

ROY TOMS, et al., 

Defendants. 

________________________________________

ELAINE L. CHAO, Secretary of the United States 

Department of Labor, 

Plaintiff, 

v. 

WELLS FARGO BANK, N.A., et al., 

Defendants 

AND RELATED CLAIMS 

Case No.: CIV. S-99-1941 LKK/PAN 

Class Action 

(Consolidated for all purposes with 

Case No.: CIV. S-01-2211 LKK/PAN) 

ORDER DIRECTING THE CLERK 

TO DISBURSE FUNDS TO THE 

UNITED STATES DEPARTMENT OF 

LABOR - CIVIL PENALTY 

COLLECTION AND TO THE ESOP 

TRUSTEE 

Case 2:99-cv-01941-LKK -PAN Document 674 Filed 05/31/05 Page 1 of 4
_______________________________________________ 

[Proposed] Order for Disbursement of Registry Funds 

 [CIV -S-01-2211 LKK PAN] 

- 2 - 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

On August 5, 2003, this Court approved the Settlement Agreement and Consent Decree 

("Consent Decree") between the Secretary of Labor and Defendants Nicholas Toms, Kimberley 

Toms, Roy Toms (deceased), Doris Toms, Nicola Macklin, Ken Macklin, Seajay (Toms) 

Liebscher, Brandon Bean and Christopher Bean (collectively the "Toms Family Defendants"). 

Pursuant to the Consent Decree, the Toms Family Defendants agreed, among other 

things, to convey to the Clerk of the Court the sum of one hundred thirty-three thousand three 

hundred thirty-three dollars and thirty-three cents ($133,333.33) as required to be assessed 

pursuant to ERISA § 502(l), 29 U.S.C. § 1132(l) ("Section 502(l) Payment"). Consent Decree, ¶ 

5.b. 

The Consent Decree further provided that the Section 502(l) Payment would be placed by 

the Clerk of the Court into the registry of the Court pursuant to an Order of the Court under Fed. 

R. Civ. P. 67 and Local Rule 67-150 pending the outcome of the Toms Family Defendants' 

application to the Secretary of Labor for a waiver or reduction of the Section 502(l) Payment 

pursuant to ERISA § 502(l)(3), 29 U.S.C. § 1132(l)(3), and regulations promulgated thereunder. 

Id. 

On February 13, 2004, one Hundred Thirty-Three Thousand Three Hundred Thirty-Three 

Dollars and Thirty-Three Cents ($133,333.33) was deposited with the Clerk of the Court in 

account number 3753266460, a money market - interest bearing account, in Case No. 2:99-CV1941; Hon Renfrew v Toms, et al. (Court 120800). 

Pursuant to the Consent Decree, if the Secretary determined that the Section 502(l) 

penalty should not be waived or reduced, the Clerk of the Court would convey to the Secretary 

an amount equal to one hundred thirty-three thousand three hundred thirty-three dollars and 

thirty-three cents ($133,333.33) and any amount of money remaining in the account attributable 

to the Toms Family Defendants' initial deposit, would be conveyed by certified check or wire 

transfer, to the Trustee of the Toms Sierra Company, Inc. Employee Stock Ownership Plan 

Case 2:99-cv-01941-LKK -PAN Document 674 Filed 05/31/05 Page 2 of 4
_______________________________________________ 

[Proposed] Order for Disbursement of Registry Funds 

 [CIV -S-01-2211 LKK PAN] 

- 3 - 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

("ESOP") for the benefit of the Toms Sierra Company, Inc. Employee Stock Ownership Trust 

("ESOT"). Consent Decree, ¶ 8.b. 

On March 22, 2005, the Director of the Office of Exemption Determinations, Employee 

Benefits Security Administration, Department of Labor, issued a letter to the Toms Family 

Defendants providing the Department's final determination not to grant the Toms Family 

Defendants' petition for waiver or reduction of the assessed civil penalty. 

On June 18, 2001, the Hon Charles B. Renfrew (Ret.) was appointed as Trustee for the 

ESOP ("Trustee Renfrew"). On August 1, 2002, Alan Biller was engaged as a co-Trustee by 

Trustee Renfrew to handle the actual administration of the ESOP. Pursuant to an order of the 

Court following the September 5, 2002, Alan Biller was thereafter appointed as co-Trustee by 

the Toms Sierra Company, Inc. On March 24, 2005, the Court issued an order relieving Trustee 

Renfrew of his appointment as co-Trustee of the ESOP and ordering that Mr. Biller would 

remain as Trustee to oversee the final distributions and any remaining administrative duties 

associated with the ESOP. 

THEREFORE, IT IS ORDERED that pursuant to Fed. R. Civ. P. 67 and Local Rule 67-

150(g) the Court directs the Clerk to disburse the funds deposited by the Toms Family 

Defendants in the registry, in account number 3753266460, as follows: 

a. By check made out to the "United States Department of Labor" in the amount of 

one hundred thirty-three thousand three hundred thirty-three dollars and thirtythree cents ($133,333.33) and sent by United States Postal Service, First-Class 

delivery to: 

United States Department of Labor, 

 Civil Penalty Collection 

 P.O. Box 100240 

 Atlanta, Georgia 30384-0240 

b. By certified check made out to the "Toms Sierra Company, Inc. Employee Stock 

Ownership Trust", EIN: 94-1498203, all remaining amounts in the Registry (after 

Case 2:99-cv-01941-LKK -PAN Document 674 Filed 05/31/05 Page 3 of 4
_______________________________________________ 

[Proposed] Order for Disbursement of Registry Funds 

 [CIV -S-01-2211 LKK PAN] 

- 4 - 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

deducting any administrative fee from accumulated interested) and sent by United 

States Postal Service, First-Class delivery to: 

Alan D. Biller, Trustee 

Alan D. Biller & Associates, Inc. 

333 Town & Country Village 

Palo Alto, CA 94301 

SO ORDERED this 27th day of May, 2005. 

 

 /s/Lawrence K. Karlton 

Hon. Lawrence K. Karlton 

 United States District Judge 

Case 2:99-cv-01941-LKK -PAN Document 674 Filed 05/31/05 Page 4 of 4