EBSA News Release: [10/04/2011]
Contact Name: Rhonda Burke or Scott Allen
Phone Number: (312) 353-6976 or x6976
Release Number: 11-1391-CHI
US Labor Department seeks to recover more than $1.9 million in assets of A.B.D. Tank & Pump Co. retirement plan misused by company owner
ELMHURST, Ill. The U.S. Department of Labor has filed a complaint in federal court against Elmhurst-based A.B.D. Tank & Pump Co. and Keith Davis, its president and sole owner, to restore more than $1.9 million to the company's retirement plan. The complaint alleges that Davis depleted the assets of the plan through a series of withdrawals and transfers to himself and the company from Dec. 4, 2006, through Nov. 3, 2010, in violation of the Employee Retirement Income Security Act.
"By taking action here, we are underscoring the Labor Department's commitment to hold accountable those who are entrusted with the assets of workers' retirement plans," said Phyllis C. Borzi, assistant secretary of the department's Employee Benefits Security Administration. "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 complaint seeks the reversal of all prohibited transfers and the repayment of all losses, with interest, to the plan. The complaint also seeks to remove Davis as the plan's trustee and permanently enjoin him from serving as a fiduciary or service provider to any employee benefit plan subject to ERISA.
The department's regional solicitor in Chicago is litigating this case, based on an investigation by EBSA's Chicago Regional Office. Employers and workers can reach EBSA's Chicago office at 312-353-0900 or toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans. Additional information can be found at http://www.dol.gov/ebsa/.
Solis v. A.B.D. Tank & Pump Co., Keith Davis
Civil Action Number: 11-cv-06987