US Department of Labor files suit to remove fiduciary from Investment Group Inc. 401(k) Plan in Chicago

Date of Action: June 10, 2013

Type of Action: Complaint

Names of Defendants: Alex Bulmash, Investment Group Inc. and Investment Group Inc. 401(k) Sharing Plan & Trust

Allegations: The Investment Group Inc. was a mortgage brokerage firm which processed residential mortgages in Cook County, Ill. Bulmash was the president and owner of Investment Group Inc. and sole fiduciary to the Investment Group Inc. 401(k) Sharing Plan & Trust established in January 2003.

Investment Group Inc. ceased operations sometime in 2007 and was involuntarily dissolved by the Illinois Secretary of State on Oct. 9, 2009. 

Bulmash was convicted and sentenced to eight months in prison and 30 months of supervised release for one count of wire fraud on June 9, 2010 and consequently may no longer serve as a fiduciary to the Investment Group Inc. 401(k) Sharing Plan & Trust.

According to the last valuation for the period ending July 9, 2012, the plan had three participants and funds totaling $22,476. The plan has not been administered since the company ceased operations in 2007.

Resolution: The complaint seeks to remove Bulmash from his position as plan administrator and trustee, remove Investment Group Inc. as plan administrator and permanently enjoin both defendants from serving as fiduciaries or service providers to any employee benefit plan subject to the Employee Retirement Income Security Act. The suit also asks the court to appoint an independent fiduciary to terminate the plan and distribute its assets to qualified participants.

Court: United States District Court for the Northern District of Illinois, Chicago

Docket Number: 1-13-cv-04285

Employers and workers can reach Employee Benefits Security Administration 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.

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.