Department of Labor files suit to recover funds for Kurt Ver Helst DC Employee Stock Ownership Plan in Ames, Iowa

Date of Action:  Dec. 29, 2011

Type of Action:  Complaint for breach of the Employment Retirement Investment Security Act and Injunctive Relief

Names of Defendants: Kurt Ver Helst, D.C., P.C., an Iowa Corporation; Kurt Ver Helst individually and as a fiduciary to the Kurt Ver Helst DC Employee Stock Ownership Plan; Mark Eldridge, individually and as a service provider to the Kurt Ver Helst DC Employee Stock Ownership Plan; and the Kurt Ver Helst DC Employee Stock Ownership Plan, an employee benefit plan.

Allegations: At the time of the employee stock ownership plan termination in 2009, Kurt Ver Helst, D.C., P.C. and Kurt Ver Helst permitted unallocated ESOP shares valued at $21,638 to revert to Kurt Ver Helst D.C., P.C. when the shares should have been allocated to participants and also at the time the ESOP terminated, took no action to repay $62,939 in interest improperly charged on two loans to the ESOP.  In addition, Mark Eldridge knowingly participated in the breaches described above.

Resolution: The lawsuit seeks to require defendants Kurt Ver Helst D.C., P.C. and Kurt Ver Helst to make full restitution of all losses suffered by the ESOP as a result of their fiduciary breaches and prohibited transactions, including lost opportunity income. The suit seeks to have Kurt Ver Helst permanently enjoined from serving as a fiduciary or service provider to any ERISA covered employee benefit plan in the future and to enjoin Mark Eldridge from serving as a fiduciary or service provider to the Kurt Ver Helst DC ESOP.

Court: Southern District of Iowa, Central Division, Des Moines, Iowa

Docket Number: 4:11-cv-00621

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.