SOURCE: www.dol.gov
CHICAGO — The U.S. Department of Labor has sued Elmhurst-based Results One Financial LLC and Steven Salutric, co-founder and director of the investment management company, for allegedly withdrawing more than $1 million from five pension plan client accounts from 2005 through 2009. The lawsuit follows an investigation by the department’s Employee Benefits Security Administration into alleged violations of the Employee Retirement Income Security Act.
“These acts have jeopardized the retirement security of many workers,” said EBSA Assistant Secretary Phyllis C. Borzi. “It is particularly egregious when those charged with the responsibility of protecting workers’ benefits violate that trust by committing illegal acts for personal gain. The Labor Department will not stand for it, and we will take all actions necessary to make sure workers receive their hard-earned benefits.”
The suit, filed in federal district court in Chicago, alleges that Salutric misdirected the plan assets to entities in which he had a financial interest, including a film distribution company, a restaurant and a real estate partnership, as well as a church where he served as treasurer. The suit also asserts that Results One Financial LLC violated its fiduciary duties with respect to these transactions and that, as a co-fiduciary, the company is liable for the actions of Salutric due to a responsibility to monitor the actions of its staff.
The suit seeks a court order to require the defendants to restore all losses to the five pension plan clients and to correct the prohibited transactions involved. The employee benefit plan clients from which Salutric allegedly misdirected funds to unauthorized investment accounts include: Baker’s Buddy Inc. Employees Profit Sharing Plan; Howard Concrete Inc. 401(k) Plan; Kramer Tree Specialists Inc. Employees 401(k) and Profit Sharing Plan; RAMSCO Profit Sharing Plan; and Supreme Auto Transmissions Inc. Profit Sharing Plan. The suit also asks that Results One Financial LLC and Salutric be permanently barred from serving as fiduciaries or service providers to any plan governed by ERISA.
Results One Financial LLC was a registered investment advisory firm that provided services to a wide range of clients, including ERISA-covered employee benefit plans. As a result of a separate suit filed by the Securities and Exchange Commission on Jan. 8, 2010, Salutric’s assets were placed in the hands of a court-appointed receiver.
EBSA protects the security of the retirement, health and other workplace-related benefits of America’s workers, retirees and their families. The agency oversees approximately 708,000 private sector retirement plans, 2.8 million health plans and a similar number of other workplace-related benefit plans that provide benefits to more than 150 million Americans. Collectively, these plans hold more than $6 trillion in assets.
EBSA’s Chicago Regional Office investigated the case in coordination with the SEC’s Chicago Regional Office. Employers and workers can contact EBSA’s Chicago office at 312-353-0900 or the agency’s toll-free number at 866-444-3272 for help with problems relating to private sector health and pension plans.
Solis v. Salutric, Results One Financial LLC
Civil Action Number: 11-cv-01632