A Cicero, Ill., real estate company’s president and owner must compensate participants for financial losses caused by the misappropriation of pension and profit-sharing plans under a federal court order.
A Department of Labor investigation revealed participants sustained financial losses because of the misappropriation of funds from the company's cash balance pension and profit-sharing plans, according to a Sept. 9 news release. Michael Olszewski is the trustee and fiduciary of Area Wide Realty Corporation's cash balance pension plan and trust and its profit-sharing plan and trust.
“This consent order ensures Michael Olszewski will not benefit from violating his employees’ trust,” Employee Benefits Security Administration Acting Regional Director in Chicago Kelli Hammerl said in the release. “Fiduciaries must always work in the best interest of the fund. The U.S. Department of Labor’s Employee Benefits Security Administration is committed to ensuring the integrity of employee benefit programs and holding those who violate the law accountable.”
The Labor Department’s lawsuit alleged Olszewski transferred funds out of the employee benefit plans to personal annuity policies in his own name in 2011, the release reported. In later years, he returned funds to plan accounts, but then again withdrew money from the plans.
The U.S. District Court for the Northern District of Illinois entered the order to require Olszewski to reimburse the due amounts to both plans, plus interest, according to the release.
