Judge orders former Elmhurst pre-school to reimburse employee retirement, health plans $43K

Date of Action:          Feb. 28, 2024

Type of Action:         Employee Retirement Income Security Act default judgment

Company/Owners:    Elmhurst Academy of Early Learning Inc.

                                    Colleen Odegaard

                                    Elmhurst Academy of Early Learning Simple IRA Plan

                                    Elmhurst Academy of Early Learning Health Plan

Background: The Secretary of Labor filed a lawsuit on Dec. 13, 2022, after the department’s Employee Benefits Security Administration found the Elmhurst Academy of Early Learning Inc. and owner, Colleen Odegaard, failed to pay $22,758 in employees’ voluntary salary contributions to the Elmhurst Academy of Early Learning Simple IRA Plan from Sept. 26, 2016, to Oct. 15, 2021 and $10,282 in employee contributions to the Elmhurst Academy of Early Learning Health Plan from May 1, 2021, to Oct. 15, 2021 – both violations of the Employee Retirement Income Security Act. The pre-school ceased operations in 2021.

Resolution: Entered Feb. 28, 2024, in the U.S. District Court for the Northern District of Illinois, Eastern Division, the default judgment signed by Judge Steven C. Seeger requires Elmhurst Academy of Early Learning Inc. to remit $32,495 to the Elmhurst Academy of Early Learning Simple IRA Plan and $11,810 to the Elmhurst Academy of Early Learning Health Plan within 14 days. The amounts include lost opportunity costs. Elmhurst Academy of Early Learning will forward the funds to the IRA Plan’s asset custodian along with allocation instructions, with defendant Odegaard to be paid after all other IRA Plan participants. 

The department’s Office of the Solicitor in Chicago filed a complaint against Elmhurst Academy of Early Learning after it failed to resolve the matter administratively. The default judgment was sought after the defendants failed to respond to the court or participate in the litigation despite several court orders to do so.

Employers and workers can reach EBSA toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans. Learn more about EBSA.

Quote: “Failing to forward voluntary employee contributions to employee retirement and health plans violates employees’ trust and denies workers the opportunity to earn interest on their investments and prepare for their future,” said Employee Benefits Security Administration Regional Director Ruben Chapa in Chicago.

Docket Number: Case No. 1:22-cv-6987