A federal court has ordered the owner of Elmhurst-based ABD Tank & Pump Co. to repay $2.7 million that was illegally skimmed from the company’s 401(k) plan.
The ruling followed an investigation by the U.S. Department of Labor’sSecurity Administration (EBSA), which filed a lawsuit in federal court to recover the funds. The court entered a default judgment in EBSA’s favor.
The court order requires ABD to repay all the funds, plus interest that would have accrued. It also permanently bars the company from acting as a fiduciary in any retirement plan covered by the Employee Retirement Income Security Act.
Note: It may be tempting to use an employee retirement plan to augment your cash flow if your business is starting to tank. But watch out. As this case shows, that kind of malfeasance is illegal, and a good way to flush the goodwill of your employees down the drain.