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News Brief

Judge orders fiduciary to restore more than $6,300 to ECS Web Employees 401(k) Plan & Trust in Auburn Hills, Mich.

Date of Action: Oct. 15, 2012

Type of Action: Consent order and judgment

Names of Defendant: Robert Fassanella, individually and as a fiduciary to the ECS Web Employees 401(k) Plan & Trust; ECS Web Employees 401(k) Plan & Trust

Allegations: Fassanella, in his capacity as the plan’s trustee, improperly transferred $5,558.90 from the plan’s forfeiture account to himself in April and May 2009. Subsequently, Fassanella abandoned his duty as trustee and failed to properly administer the plan by depriving the plan’s participant’s access to their individual account balances. As of Feb. 28, 2011, the plan had six participants and more than $25,000 in assets.

Resolution: The court has ordered Fassanella to restore a total of $6,310.03 to the plan, which includes lost opportunity costs, resulting from his fiduciary breaches within 10 days. He has also been permanently barred from serving as a fiduciary or service provider to any ERISA-covered employee benefit plan in the future. An independent fiduciary, Lefoldt & Company, P.A., has been appointed to administer the termination of the plan.

Court: United States District Court for the Eastern District of Michigan

Docket Number: 2:12-cv-10330

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.

Agency
Employee Benefits Security Administration
Date
October 15, 2012
Release Number
EBSA-CHI-12-24
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number