Judge orders fiduciaries to restore $83,500 to E. L. Fasel & Sons Profit Sharing Plan in Kane County, Ill., following mishandling of funds

Date of Action: June 9, 2014

Type of Action: Consent Order and Judgment

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 funds 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: Under terms of the consent order and judgment, Orland Fasel, Bernice Fasel and Edward Fasel are jointly and individually liable to the E. L. Fasel & Sons Inc. Profit Sharing Plan for $83,500.

A consent judgment was issued ordering Bernice Fasel and Edward Fasel liable to the Plan on Oct. 10, 2013. The consent judgment ordering Orland Fasel liable to the Plan was entered by the court on June 9, 2014.

All three defendants have been removed from their positions as fiduciaries to the E.L. Fasel & Sons Profit Sharing Plan, and permanently enjoined from serving as fiduciaries or service providers to any employee benefit plan subject to the Employee Retirement Income Security Act.

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.

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