U.S. Labor Department sues fiduciary of Elk Grove Village-based company to recover profit-sharing plan assets

Archived News Release — Caution: Information may be out of date.

Elk Grove Village, Illinois – The U.S. Department of Labor has sued the vice president and profit-sharing plan trustee of Eagle International Ltd. in Elk Grove Village for violating the Employee Retirement Income Security Act (ERISA) by making an improper $30,000 loan to the company and failing to terminate the plan after the company ceased operation in 2003.

The Labor Department’s lawsuit alleges that former company vice president Catherine Dussias authorized a $30,000 loan to herself in order to fund Eagle’s corporate operations, even though the company’s profit-sharing plan does not allow such loans. The department seeks to recover all assets owed to the plan, plus interest, and to permanently bar Dussias from serving as a fiduciary to any ERISA-covered plan. The suit also asks the court to appoint an independent fiduciary to manage and terminate the plan.

“The department acts to help workers get their benefits when plan assets are either misused or the plans are abandoned,” said Steven Haugen, director of the department’s Chicago Regional Office of the Employee Benefits Security Administration (EBSA), which investigated the case.

The suit, filed in federal district court in Chicago, resulted from an investigation conducted by EBSA’s Chicago office. Employers and workers can reach that office at 312.353.0900 or through EBSA’s toll-free number, 866.444.3272, for help with problems relating to private sector retirement and health plans.

In fiscal year 2007, EBSA achieved monetary results of $1.5 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Chao v. Eagle International
Civil Action Number 08-cv-1648

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Archived News Release — Caution: Information may be out of date.