Labor Dept: Elmhurst firm depleted nearly $2M in retirement funds

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Updated: January 10, 2012 11:30AM

The U.S. Department of Labor is seeking to recover more than $1.9 million in assets of a west suburban company’s retirement plan that it says was misused by the company owner.

The Department of Labor filed a complaint in federal court last week 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, a release from the agency said.

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,” Phyllis C. Borzi, assistant secretary of the department’s Employee Benefits Security Administration, said. “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.