US Department of Labor obtains order requiring fiduciary to restore $80K to Cargill Heating & Air Conditioning Co., Inc. Savings Plan in La Crosse, Wis.

Date of Action: Jan. 5, 2015

Type of Action: Consent Order and Judgment

Names of Defendants: Cargill Heating & Air Conditioning Co., Inc., Michael Earl Galstad, and Cargill Heating & Air Conditioning Co., Inc. Savings Plan in La Crosse, Wis.

Allegations: The U.S. Department of Labor filed a lawsuit on March 25, 2014, in the U.S. District Court for the Western District of Wisconsin, alleging violations of the Employee Retirement Income Security Act by the defendants.

Resolution: Under the terms of the consent order and judgment, the defendants are jointly and severally liable to the Cargill Heating & Air Conditioning Co. Inc. Savings Plan for engaging in and failing to prevent or take corrective action for prohibited transactions involving the transfer of plan assets from the Plan from May 31, 2008, to April 30, 2012. Additionally, the defendants have been enjoined from serving as fiduciaries or service-providers to any ERISA-covered employee benefit plan in the future.

Pursuant to the consent order and judgment, and consistent with an order that is expected to be entered by the U.S. Bankruptcy Court for the Western District of Wisconsin, Galstad, who was president and majority owner of Cargill Heating & Air Conditioning Co., is ordered to make a payment of $80,000 in restitution to the Cargill Heating & Air Conditioning Co., Inc. Savings Plan by Jan. 15, 2015.

Court: United States District Court, Western District of Wisconsin, Madison, Wis.

Docket Number: 3:14-cv-00228

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.

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