Ex-owner of Auburn firm to pay $125,000 in lawsuit

PORTLAND – A former owner of a financial services firm in Auburn has agreed to pay more than $125,000 to resolve a lawsuit accusing him of mismanaging pension funds of dozens of people employed by companies in Maine.

Robert Montgomery, who owned 49 percent of Payroll Benefits Inc., was responsible for administering the assets of 18 pension plans between 1998 and 2001, according to a lawsuit filed by the U.S. Department of Labor.

The complaint alleged that Montgomery was delinquent in forwarding plan contributions to designated investment funds, did not keep accurate records and furnished delinquent and inaccurate benefit statements to the plans’ participants.

The judgment orders Montgomery to pay more than $125,000 in restitution to employees at small companies in Auburn, Lewiston, Turner, Greene, Sabattus, Scarborough, Waterville, Damariscotta and Brunswick.

He is also prohibited for five years from working as a fiduciary to any employee benefit plan that falls under the federal Employee Retirement Income Security Act.