For Immediate Release: February 28, 2013
Contact: Scott Allen or Rhonda Burke
Phone: 312-353-6876 or 312-353-6976
Email: email@example.com or firstname.lastname@example.org
Release Number: 13-161-CHI
US Department of Labor files suit against Hico Flex Brass Co. in
Machesney Park, Ill., seeking to restore $79,700 to employee retirement plan
CHICAGO – The U.S. Department of Labor has filed a lawsuit in federal court to restore $79,761.61 to the Hico Flex Brass Co. Inc. 401(k) plan. The suit alleges that the company, as well as former vice president Mark Isaacs and president Neil Isaacs, violated the Employee Retirement Income Security Act by failing to distribute plan assets to participants.
“The department is committed to holding accountable those who are entrusted with the assets of workers’ retirement plans,” said Steve Haugen, director of EBSA’s Chicago Regional Office, which conducted the investigation. “We will continue to help workers obtain their rightful benefits when plan fiduciaries violate the law.”
The suit alleges that in September 2010, Mark Isaacs, a company vice president and a fiduciary and trustee to the Hico Flex Brass Co. 401(k) plan, redeemed a total of $702,153.99 in assets from the plan to be deposited into company accounts. A total of $622,518.10 in plan assets were distributed to eligible participants from November 2010 to October 2011. As of Sept. 28, 2012, the plan, which had not been terminated, had a total of $79,761.61 in assets remaining to be distributed to 15 eligible participants.
The suit seeks to require Mark Isaacs, Neil Isaacs and the company to restore to the Hico Flex Brass Co. 401(k) plan any losses, including lost opportunity costs, resulting from the fiduciary breaches they committed or for which they are liable. The suit also seeks to permanently enjoin them from serving as fiduciaries or service providers to any ERISA-covered plan in the future and to have an independent fiduciary appointed to terminate the plan and distribute its assets to eligible participants.
The department’s regional solicitor in Chicago is litigating this case, which has been filed in the U.S. District Court, Northern District of Illinois–Eastern Division in Chicago. Workers participating in employer-sponsored health and retirement benefit plans who feel that they have been denied a benefit inappropriately or have questions about benefits laws can contact EBSA’s Chicago office at 312-353-0900. To contact an EBSA benefits advisor visit www.askebsa.dol.gov or call 866-444-EBSA (3272).
Harris v. Mark Isaacs, Neil Isaacs, Hico Flex Brass Co. Inc., and Hico Flex Brass Co. Inc. 401 (k) plan.
Civil Action Number: 1:13-cv-01533
U.S. Department of Labor news materials are accessible at www.dol.gov. The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling 202-693-7828 or TTY 202-693-7755.