FROM: U.S. DEPARTMENT OF LABOR
US Labor Department suit results in court order requiring Chicago-area investment service provider to restore $1.2 million to worker retirement plans
CHICAGO — Following an investigation by the U.S. Department of Labor and resulting lawsuit, a federal court has issued a default judgment against the co-founder and director of the now defunct Elmhurst-based investment management company Results One Financial LLC. Steven Salutric has been ordered to restore $1,211,902.25 to four pension plan client accounts from which he allegedly withdrew funds from 2005 through 2009 in violation of the Employee Retirement Income Security Act.
"It is particularly egregious when those entrusted with protecting workers' retirement assets jeopardize them by committing illegal acts for personal gain," said Secretary of Labor Hilda L. Solis. "The Labor Department is committed to taking all necessary actions to ensure that workers' hard-earned income and benefits are protected. America's workers deserve and are entitled to keep what they have rightfully earned for themselves and their families."
The department's suit, filed in federal district court in Chicago, alleged that Salutric misdirected the assets of client plans to entities in which he had an interest, including a film distribution company, a restaurant and a real estate partnership, and to a church where he served as treasurer. Results One Financial LLC was a registered investment advisory company that provided services to a wide range of clients, including ERISA-covered employee benefit plans.
"Worker retirement savings accounts were given special protections by Congress due to the significant role they play in providing a secure retirement," said Phyllis C. Borzi, assistant secretary of labor for employee benefits security. "The Labor Department's Employee Benefits Security Administration will continue to help workers understand their rights and fight to protect their assets."
The court order requires Salutric to restore all losses, including lost opportunity costs, to the four pension plan clients and to correct the prohibited transactions involved. The judgment also bars Salutric from serving as a fiduciary or service provider to any employee benefit plan governed by ERISA in the future.
EBSA's Chicago Regional Office investigated the case in coordination with the Chicago Regional Office of the U.S. Securities and Exchange Commission. 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 related to private sector health and pension plans.
