Judge orders Joseph M. Phelan to restore $10,470 to Phezer Enterprises Inc. Health Plan in Crystal Lake, Ill.

Date of Action:  Aug. 30, 2011

Type of Action:  Consent order and judgment

Name of Defendant: Joseph M. Phelan, individually and as a fiduciary to the Phezer
Enterprises Inc. Health Plan and the Phezer Enterprises Inc. Health Plan

Allegations: Phelan, in his capacity as a fiduciary to the Phezer Enterprises Inc. Health Plan, failed to ensure that $10,470 in employee health premium contributions for the period of May 3, 2008, through July 12, 2008, were forwarded to the plan.

Resolution: The court ordered Phelan to repay the health plan contributions to those plan participants, who were employees of Phezer Enterprises and had voluntary employee health premium contributions withheld from their pay for contribution to the plan from May 3, 2008, through July 12, 2008. Phelan must also pay $369 in lost opportunity cost to the collective participants on a pro rata basis.

Phelan is also permanently enjoined for serving or acting as a fiduciary or service provider with respect to any employee benefit plan subject to the Employment Retirement Income Security Act.

The United States Bankruptcy Court for the Northern District of Illinois, Western Division entered an order, May 20, 2010, providing Phelan’s total debt to the plan was non-dischargeable under his Chapter 7 bankruptcy case 09-70398.

Court: Northern District of Illinois, Western Division, Rockford, Ill.

Docket Number: 10-cv-50113

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U.S. Department of Labor materials are accessible at www.dol.gov.  The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling 202-693-7828 or TTY 202-693-7755.