By Paula Aven Gladych
A federal court in Chicago has ordered Elmhurst, Ill.-based A.B.D. Tank & Pump Co. to restore nearly $2.8 million to the company’s retirement plan.
An investigation by the U.S. Department of Labor’s Employee Benefits Security Administration, and subsequent lawsuit, found that Keith Davis, the company’s president and sole owner, allegedly depleted the assets of the plan through a series of withdrawals and transfers to himself and the company from Dec. 6, 2006, through Nov. 4, 2010, in violation of the Employee Retirement Income Security Act.
"The Labor Department is committed to holding accountable those who are entrusted with the assets of workers' retirement plans," said Phyllis C. Borzi, assistant secretary of labor for employee benefits
security. "We will continue to help workers obtain their rightful benefits when plan fiduciaries violate the law."
The A.B.D. Tank & Pump Co. 401(k) & Profit Sharing Plan & Trust, a retirement plan for the company's employees funded by employer contributions, was established in 1992. Davis is the plan's trustee.
The court order requires A.B.D. Tank & Pump Co. to restore all losses, including lost opportunity costs, to the retirement plan
, and permanently bars A.B.D. Tank & Pump Co. from serving as a fiduciary or service provider to any employee benefit plan governed by ERISA in the future. The complaint against Davis remains pending.
Originally published on BenefitsPro.com