For more stories like this, sign up for the PLANADVISERdash daily newsletter.
Compliance March 9, 2011
Wisc. Man Diverted $1.3M from Profit-Sharing Plan
The U.S. Department of Labor (DoL) 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 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.
You Might Also Like:
DOL: Most Employer Contributions to Trump Accounts Not Subject to ERISA
The Department of Labor addressed whether employers’ contributions were a workplace benefit, particularly for employees’ children.
Guiding Plans Through Private Market Decisions
Fees remain a concern with alternative assets, but experts say even modest gains could compound meaningfully over a worker’s career.
Reading 45,000 Comments on DOL 401(k) Investment Selection Rule
There is a sharp divide about how far plan fiduciaries should be allowed to go when considering alternative investments.