Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.
Compliance March 9, 2011
WI Businessman Sued for Diverting Profit Sharing Plan Assets
March 9, 2011 (PLANSPONSOR.com) – The U.S. Department of Labor (DoL) has sued Coin Builders LLC of Wisconsin Rapids and its president, Joseph Kreeger, to restore more than $1.3 million plus interest to the company’s profit-sharing plan.
Reported by
Fred Schneyer
A news release said the lawsuit, filed in U.S. district court alleges that Kreeger improperly transferred $1.3 million in plan assets to a Coin Builders LLC bank account. Kreeger also allegedly handled plan assets without being bonded as required by the Employee Retirement Income Security Act (ERISA).
The suit seeks a court order to restore money owed to the plan, correct transactions prohibited by law, remove Kreeger and Coin Builders LLC from serving as fiduciaries to the plan, and permanently bar them from serving as fiduciaries to any ERISA-covered plan in the future.
It also asks the court to appoint an independent fiduciary to terminate the plan and to distribute the plan’s assets to eligible participants and beneficiaries.