Legal Question in Administrative Law in California

Re: ERISA Law

The correct term is "breach of fiduciary duty" which can be grounds for both civil lawsuits and criminal charges.

Re: ERISA Law

It might be a conflict of interest, but if I had to come up with a fitting legal term, the first thing that would occur to me is 'breach of fiduciary duty." Maybe a conflict of interest as well.

This is not to condemn the administrator without knowing more; it is possible that the terms of the plan expressly or impliedly permit this type of transaction, or there is some other innocent explanation.

Nevertheless, my offhand view is that the plan administrator is a fiduciary of the beneficiaries and deals of this sort bear close scrutiny for possible breaches of a fiduciary's duties of loyalty and care, and to refrain from self-dealing.

Re: ERISA Law

It would have to be with a lot of due diligence, discloures and paperwork to avoid being improper. If the plan loses money, he would be at risk of personal liability. If you have been harmed by this, being a participant in the plan that lost money, or stands to lose money, then you could consider suing him on behalf of the plan participants. Contact me if so.