U.S. Labor Department Obtains Settlement with Broadview, Illinois Business Owners to Restore Workers’ Profit Sharing Plan Assets

Archived News Release — Caution: Information may be out of date.

Chicago, Illinois - The U.S. Department of Labor has obtained a settlement requiring restoration of assets to the BGB Network Inc. Safe Harbor 401(k) Profit Sharing Plan and permanently barring former trustees of the plan, based in Broadview, Illinois, from service to employee benefit plans governed by the Employee Retirement Income Security Act (ERISA) in the future.

Trustees Raymond J. Fisher and Scot B. Chileen agreed to pay $46,792 owed the plan for losses resulting from violations of ERISA. The trustees allegedly failed to remit to the plan employee contributions and loan repayments deducted from employees’ paychecks during 2001 through 2004. Fisher of Wilmette, Illinois, and Chileen, Mt. Prospect, Illinois, were officers of BGB Network Inc.

“The department will act when plan fiduciaries fail to carry out their duty to protect the retirement plan assets held on behalf of participants,” said Kenneth Bazar, director of the department’s Chicago regional office of the Employee Benefits Security Administration (EBSA).

Employers with similar problems, who are not yet the subject of an investigation by EBSA, may be eligible to participate in the department’s Voluntary Fiduciary Correction Program (VFCP). Participation in the VFCP requires employers to make workers whole but allows them to avoid EBSA enforcement actions and civil penalties as well as any applicable excise taxes. For more information about the VFCP, see www.dol.gov/ebsa.

The suit resulted from an investigation conducted by the Chicago regional office of EBSA. Employers and workers can reach the Chicago office at 312.353.0900 or through EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector retirement and health plans. In fiscal year 2005, EBSA achieved monetary results of $1.7 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

(Chao v. Fisher)
Civil Action No. 06-CV-01793

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Archived News Release — Caution: Information may be out of date.

Contact Name: Brad Mitchell
Phone Number: 312.353.6976