US Labor Department files lawsuit to restore $92,000 to E. L. Fasel & Sons Profit Sharing Plan in Kane County, Ill., following mishandling of funds

Date of Action: Sept. 9, 2013

Type of Action: Complaint

Names of Defendants: Orland Fasel, Bernice Fasel, Edward Fasel, E. L. Fasel & Sons Inc. Profit Sharing Plan

Allegations: Orland Fasel, who was co-owner of E.L. Fasel & Sons Inc. and fiduciary to the E.L. Fasel & Sons Inc. Profit Sharing Plan, improperly transferred funds from the Plan to himself and his wife, Margaret Fasel.   Edward Fasel was co-owner of the company and a named trustee of the Plan.  Bernice Fasel was also a named trustee of the Plan.

Between Dec. 15, 2006, and Feb. 22, 2010, Orland Fasel  improperly transferred $92,000 from the Plan to himself and his wife. 

Bernice Fasel and Edward Fasel, as named trustees of the Plan, improperly allowed the transfers from the Plan and are liable, as co-fiduciaries, for such transfers. 

E. L. Fasel & Sons Inc., which was located in Big Rock, Ill., ceased operations in September 2008.

Resolution: The complaint seeks to require the fiduciaries to correct the prohibited transactions in which they engaged or for which they are liable and to restore to the Plan any losses, including lost opportunity costs, resulting from their fiduciary breaches.

It also asks the court to remove Orland Fasel, Bernice Fasel and Edward Fasel from their positions as fiduciaries to the E.L. Fasel & Sons Profit Sharing Plan, permanently enjoin the defendants from serving as fiduciaries or service providers to any employee benefit plan subject to the Employee Retirement Income Security Act and 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-06439

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.