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Compliance August 31, 2012
Ill. Company to Restore $2.7M to 401(k)
August 31, 2012 (PLANSPONSOR.com) - Elmhurst, Illinois-based A.B.D. Tank & Pump Co. has been ordered to restore $2,767,051 to the company’s retirement plan.
Reported by Rebecca Moore
A lawsuit following an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration alleged Keith Davis, the company’s president and sole owner, depleted the assets of the plan through a series of withdrawals and transfers to himself and the company from December 6, 2006, through November 4, 2010, in violation of the Employee Retirement Income Security Act (ERISA).
The A.B.D. Tank & Pump Co. 401(k) & Profit Sharing Plan & Trust 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.« Pentegra to Provide Retirement Products for New York Banks