Elmhurst Business Owes After 'Longstanding Failure' To Comply: Judge

ELMHURST, IL – The former owner of an Elmhurst preschool broke federal law by keeping money that was designated for employees, a federal judge found.

This was after the judge gave her several chances to make her case.

In late February, the judge ordered Colleen Odegaard, owner of the now-defunct Elmhurst Academy of Early Learning, to pay $44,302. She was required to do so in two weeks, but court records do not indicate whether she has.

Odegaard, who closed her business three years ago, has not returned messages for comment over the last year.

From 2016 to 2021, Odegaard withheld $22,758 from employees' pay for their retirement accounts, but never remitted the money, the judge said.

For five months in 2021, Odegaard was alleged to have kept $10,282 that was supposed to go to workers' health plans.

The judge went with the U.S. Department of Labor's request for an additional $11,262 in "lost opportunity costs" for such things as interest.

According to court documents, Judge Steven Seeger ruled against Odegaard "in light of her longstanding failure to participate and comply with court orders."

As recently as Feb. 12, Odegaard missed a court hearing. The judge said Odegaard did not seek permission to be absent.

Odegaard did not respond to the Department of Labor's lawsuit with a lawyer, which is required for a corporation such as Elmhurst Academy.

A year ago, Odegaard told Patch in a text message that the allegations that she mishandled health insurance and retirement contributions were "100 percent false."

"The Simple IRA contributions were to be made to my personal account in Colleen Odegaard’s name," Odegaard said at the time. "The school chose not to fund me personally. Nothing to do with employees."

While the federal government asserted Odegaard failed to respond, she told Patch the case had been "worked out" and "an explanation has been given."

The academy, which started in 1981, was at 212 W. Lake St.

In a 2021 interview, Odegaard said the school was suffering from staffing shortages and delayed payments from the state government.

In early 2023, a new preschool called Fia Mia Academy opened in the building. Fia Mia said it has no affiliation with the previous ownership.