June 20, 2005
DOL Increases ESOP Activity
In 2004, the Department of Labor closed 220 cases with ESOP violations, up from 187 in 2002. In October of this year, the Department launched a special investigation of ESOP abuses. Some of these cases were relatively minor administrative problems, but the increase is clearly due to the post-Enron fallout and concern about employer stock in retirement plans.