DoL Claims Nearly $2M Withdrawn Illegally from Plan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 (ERISA).

“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 (EBSA). “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 company is based in Elmhurst, Ill.

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.