TheSecurity Administration (EBSA) is suing Keith Davis, owner of Elmhurst-based A.B.D. Tank & Pump Co., claiming he drained his employees’ retirement fund of $1.9 million.
According to an EBSA investigation, Davis made illegal transfers from the company’s 401(k) plan to himself and the company between 2006 and 2010.
Note: Employers that act as trustees for their company’s 401(k) cannot treat the fund like a bank account, there to tap into every time cash flow dries up. Once a plan is established, it must conform to all requirements of the Employee Retirement Income Security Act.