Leura Garrett Canary, United States Attorney for the Middle District of Alabama, announced that on February 9, 2006, Judy Ann Banks Sims, age 59, of Dadeville, Alabama, pled guilty in U.S. District Court before United States Magistrate Susan Walker to a one-count felony information charging her with making false statements in connection with the Employee Retirement Income Security Act (“ERISA”), in violation of Title 18, United States Code, Section 1027.

According to the information and plea agreement, between 1997 and 2005, Sims operated the business of Professional Employee Leasing, Inc. ("PEL"), a corporation owned by her husband based in Dadeville. PEL "leased" employees to other entities, mostly physicians' offices. The physicians were billed by PEL, and PEL would pay the "leased" employees. PEL maintained a retirement benefit plan called the Professional Employee Leasing, Inc. Money Purchase Pension Plan (the "Plan"). Beginning in 1997, PEL began to fail to contribute to the Plan all of the funds it was receiving for that purpose from the physicians. As a result, each year defendant would cause to be filed with the IRS and the Department of Labor a Form 5500 (Annual Return/Report of Employee Benefit Plan) that materially overstated the amount of the Plan’s assets. As part of the plea agreement, Sims pleaded guilty to the filing of one such false form, namely, the Form 5500 for 2000, which was filed on October 13, 2001. Sims is expected to be sentenced in June by United States District Judge Mark E. Fuller in Montgomery. At that time, Sims faces a statutory maximum penalty of 5 years imprisonment, an order of restitution, and a fine of up to $250,000.

The case was investigated by the United States Department of Labor, Employee Benefits Security Administration. The case is being prosecuted by Assistant U.S. Attorney Andrew O. Schiff.