Using an employee stock ownership plan (ESOP) as a vehicle for a company owner to sell to family members or their management team has been made more expensive — and may become a lot less popular — after the settlement of a lawsuit between the U.S. Department of Labor (DOL) and First Bankers Trust Services Inc.
Maran settlement may make ESOPs more expensive
The Maran settlement adds to the rules ESOPs must follow, especially around control, and the fines levied serve as a cautionary tale: Don't set up an ESOP without proper oversight and attention to detail. Read more at Benefits Pro.
