Judge orders owner of A.B.D. Tank & Pump Co. to restore $2.8 million to worker retirement plan following US Labor Department investigation

Date of Action: Feb. 19, 2013

Type of Action: Default judgment

Names of Defendant: Keith Davis

Allegations: Keith Davis, the president and sole owner of Elmhurst-based A.B.D. Tank & Pump Co., depleted $2,849,557 in assets of the company’s profit sharing plan through a series of withdrawals and transfers to himself and the company from Dec. 6, 2006, through Nov. 4, 2010, in violation of the Employee Retirement Income Security Act. The A.B.D. Tank & Pump Co. 401(k) & Profit Sharing Plan & Trust was established in 1992 for the company’s employees and was funded by employer contributions.  Davis was the plan’s sole trustee.

Resolution: The court order requires Davis to restore all losses, including lost opportunity costs, to the profit sharing plan and permanently bars Davis from serving as a fiduciary or service provider to any employee benefit plan governed by ERISA in the future.  A default judgment was previously issued against A.B.D. Tank & Pump Co. 

The Labor Department’s regional solicitor in Chicago litigated this case in the U.S. District Court, Northern District of Illinois, Eastern Division, based on an investigation by EBSA’s Chicago Regional Office. Employers and workers can reach EBSA’s Chicago office at 312-353-0900 or toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans. Additional information can be found at www.dol.gov/ebsa.

Court: Northern District of Illinois, Eastern Division, Chicago, Ill.

Docket Number: 11-cv-06987

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.