Labor Dept. Sues Defunct Northbrook Co. Over $124K In Employee Benefits
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NORTHBROOK (STMW)– The U.S. Labor Dept. has sued a now defunct Northbrook company and its trustees for allegedly preventing qualified employees from getting the company’s 401(k) and profit-sharing plan since the company ceased operations in 2007.
Family Care Management of Northbrook and trustees Robert Kaplan, Michael Kaplan and Arnold Kaplan allegedly failed to administer and terminate the company’s 401(k) and profit-sharing plan in violation of the Employee Retirement Income Security Act, according to the suit filed Wednesday in U.S. District Court.
The plan had 15 participants and assets totaled $124,236, the suit alleges.
The suit seeks a court order to distribute the plan’s assets to qualified participants and to terminate the plan. It also seeks to permanently bar all three trustees from serving as fiduciaries or service providers to any ERISA-covered employee benefit plan in the future, a release from the U.S. Labor Dept. said.
The situation has prevented qualified participants from obtaining distributions of their individual account balances since the company ceased operations in 2007, the release said.
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