Former Employee Alleges Financial Misconduct Against Consulting Firms

Gerald R. Ford Federal Building
Gerald R. Ford Federal Building
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A Michigan resident has filed a lawsuit against his former employer, alleging significant financial misconduct and retaliation. Jeffrey T. Hoxworth initiated the complaint on February 24, 2026, in the United States District Court for the Western District of Michigan against Jeremy A. Erard, SDI Consulting, LLC, and JAE Consulting, LLC.

The case revolves around accusations that the defendants failed to pay earned wages and remit employee 401(k) contributions. Hoxworth claims he faced retaliation after raising concerns about these issues. According to the complaint, SDI Consulting withheld employee deferrals from Hoxworth’s wages but did not transmit them to the Plan Trustee as required by ERISA (Employee Retirement Income Security Act). The plaintiff alleges that this breach deprived him of benefits due under the plan. Furthermore, Hoxworth accuses Erard of using company funds for personal expenses such as gambling and day trading, which allegedly left SDI insolvent. These actions are claimed to violate both federal laws like ERISA and FLSA (Fair Labor Standards Act), as well as state laws under Michigan’s Voidable Transactions Act.

Hoxworth’s complaint outlines several legal breaches by the defendants. He argues that Erard’s control over payroll processes made him a fiduciary responsible for managing plan assets properly. By failing to remit employee contributions after withholding them from wages, Erard allegedly breached his fiduciary duties under ERISA. Additionally, Hoxworth contends that he was wrongfully terminated in retaliation for asserting his rights regarding unpaid wages and discrepancies in payroll practices.

The plaintiff seeks various forms of relief from the court including unpaid wages and overtime compensation, liquidated damages under FLSA, recovery of ERISA plan losses along with equitable reliefs such as avoidance of voidable transfers under MVTA (Michigan Voidable Transactions Act). Moreover, he requests statutory damages under Michigan law alongside attorney fees and costs.

Representing Jeffrey T. Hoxworth is Robert Anthony Alvarez Sr., an attorney with Avanti Law Group PLLC based in Wyoming, Michigan. The case ID is 1:26-cv-00626.

Source: 126cv00626_Jeffrey_Hoxworth_v_Jeremy_Erard_Complaint_Western_District_of_Michigan.pdf


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