Answer Happy

1. The trustee of a pension plan is the owner and principal officer of the employer who sponsors the plan - a construction company. While looking for investment opportunities, the trustee decided it would be safer for the plan to invest locally than on Wall Street. The trustee contracted with his own company to build a restaurant on land, leased by the plan, from an independent third party. The trustee caused the pension plan to pay additional fees to the construction company and himself that were not stated in the contract. The pension plan beneficiaries filed a lawsuit against the trustee.