An Illinois-based real estate attorney has agreed to settle with the Labor Department for $132,363 following allegations of misuse of a welfare fund dedicated to providing life insurance to employees of several different companies. These allegations sparked a lawsuit against the attorney in question. The fund in the center of these charges is the United Employee Benefit Fund Trust, which has spurred multiple lawsuits.
In a consent order submitted by the department to the US District Court for the Northern District of Illinois, the department asked for approval of the resolution of its claims against David Schwalb.
Schwalb, according to the department, was implicated in the use of over $1 million of the United Employee Benefit Fund Trust’s assets for the purchase of a fund trustee’s personal residence out of foreclosure.
This resolution agreement comes in addition to a $1.4 million payment already made by Schwalb. Further details on the case can be read in the original article.