On September 9, 2013, the DOL filed Perez v. Fasel, et al (docket number: 1:13-cv-06439) in the U.S. District Court for the Northern District of Illinois, Chicago. The suit alleges that Orland Fasel, who was co-owner of E.L. Fasel & Sons Inc. and fiduciary to the E.L. Fasel & Sons Inc. Profit Sharing Plan, improperly transferred funds from the plan to himself and his wife, Margaret Fasel. Edward Fasel was co-owner of the company and a named trustee of the plan. Bernice Fasel was also a named trustee of the plan.
Between December 15, 2006, and February 22, 2010, Orland Fasel is alleged to have improperly transferred $92,000 from the plan to himself and his wife. The suit further alleges that Bernice Fasel and Edward Fasel, as named trustees of the plan, improperly allowed the transfers and are liable, as co-fiduciaries, for such transfers.
E. L. Fasel & Sons Inc., which was located in Big Rock, Illinois, ceased operations in September 2008.
The DOL seeks to have the fiduciaries correct the prohibited transactions in which they engaged, or for which they are liable, and to restore to the plan any losses, including lost opportunity costs, resulting from these fiduciary breaches.
The DOL also asked the court to remove Orland Fasel, Bernice Fasel and Edward Fasel from their positions as fiduciaries to the plan, and permanently enjoin the defendants from serving as fiduciaries or service providers to any employee benefit plan subject to the Employee Retirement Income Security Act (ERISA). Finally, the DOL asked the court to appoint an independent fiduciary to terminate the plan and distribute its assets to qualified participants.
The full text of the complaint can be found here.