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Three former employees of Harmons City Inc. and 500 unnamed current and former employees have filed suit against the Salt Lake County grocery store chain and related individuals.

The U.S. District Court suit alleges improper use of money from the company's profit-sharing plan, which was a retirement benefit for the employees. The named plaintiffs are Zoe Roberts, Lynn Clark and Vickie Dansie.Listed as defendants are Harmons City Inc.; Terry Harmon, a trustee of the profit-sharing plan and major stockholder of the grocery store company; his wife, Doreen Harmon; his sister, Linda Harmon Green, the other major stockholder; her husband, Ray Green, a plan trustee; and 20 unnamed defendants.

The suit alleges that Ray Green and Terry Harmon made or acquiesced in the making of numerous prohibited transactions involving removing funds from the plan and channeling them into properties and entities owned and/or controlled by the two men.

These transactions, according to the suit, included making unsecured loans of millions of dollars of plan funds to Midwest Realty and Investments Inc., a real estate company operated by Terry Harmon. The complaint says all of the defendants benefited directly or indirectly from the transactions.

According to the complaint, the U.S. Department of Labor conducted a lengthy investigation and audit, after which Harmon City Inc., Ray Green and Terry Harmon entered into a consent judgment last August requiring them to make significant deposits of company stock and other property into the plan.

"The required deposits have not, to date, been made," the complaint says.