U.S. Department of Labor obtains default judgment to terminate ThreeSource, Inc. 401(k) Plan, distribute assets to participants

Date of Action: Dec. 9, 2015

Type of Action: Default Judgment

Names of Defendants: Martin R. Bothwell III and ThreeSource Inc. 401(k) Plan

Allegations: An investigation by the U.S. Department of Labor’s Employee Benefits Security Administration found that Martin R. Bothwell III, as the fiduciary of the ThreeSource Inc. 401(k) Plan, failed to administer the plan since approximately June 10, 2013, a violation of the Employee Retirement Income Security Act. The Manteno, Illinois-based company closed on June 30, 2012, and was subsequently involuntarily dissolved by the State of Illinois on Sept. 13, 2013.

As of July 9, 2015, the plan had assets totaling $56,494.99 and 20 participants, including Bothwell.

Resolution: On Dec. 9, 2015, the District Court entered a default judgment against defendants Bothwell and the Threesource, Inc. 401(k) Plan, requiring termination of the Plan consistent with the Plan’s governing documents, the Internal Revenue Code, and ERISA. Upon termination of the Plan and distribution of the Plan’s assets to participants, Bothwell is permanently enjoined from serving as a fiduciary or service provider to any ERISA-covered plan.

Court: United Stated District Court for the Central District of Illinois

Docket Number: 2:15-cv-02044-HAB

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.