Department of Labor files suits to terminate trustee of Elgin, Ill.-based Sunstrand Electric Co. and distribute benefits to participants

Date of Action: Dec. 16, 2013

Type of Action: Complaint

Names of Defendant: Eugene Aguirre and the Sunstrand Electric Company Inc. Employees 401(k) Profit Sharing Plan and Trust

Allegations: The department alleges that since August 2010, defendant Aguirre, the sole trustee to the Sunstrand Electric Company Inc. Employees 401(k) Profit Sharing Plan and Trust, failed to administer the Plan, which includes authorizing distributions to all of the Plan’s participants and beneficiaries.  As a result, participants have not been able to obtain distributions of their account balances, totaling $100,734, from the Plan.  As of Oct. 15, 2012, the Plan had nine participants.

In failing to administer the Plan, defendant Aguirre failed to discharge his duties solely in the interest of the participants and beneficiaries of the Plan and for the exclusive purpose of providing benefits to participants and beneficiaries and defraying reasonable expenses of Plan administration, in violation of Employee Retirement Income Security Act.

Resolution: The complaint seeks to permanently enjoin Aguirre from violating ERISA in the future, remove Aguirre from his position as Plan trustee, remove Sunstrand from its position as plan administrator, permanently enjoin Aguirre and Sunstrand from serving as fiduciaries or service providers to any ERISA-covered plan, appoint an independent fiduciary to distribute the Plan’s assets and to terminate the Plan, and order Aguirre to pay all reasonable fees and expenses incurred by the independent fiduciary in administering and terminating the Plan.

Court: United States District Court, Northern District of Illinois, Eastern Division

Docket Number: 1:13-cv-08948

Employers and workers can reach EBSA 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.