Feb 07, 2012
--- The U.S. Department of Labor (DoL) filed a lawsuit
against Towson Rehabilitation Center LLC and CEO Howard Neels for failing to
remit employees’ contributions to the company’s 401(k) plan.
---
The
suit resulted from an investigation by the Washington District Office of the
DoL’s Employee Benefits Security Administration (EBSA), which found that, since
January 2006, the defendants have failed to remit employee contributions to the
plan, remitted certain employee contributions late without interest and failed
to segregate the plan’s assets from the general assets of the company.
“This
case clearly demonstrates a breach of fiduciary duty,” said Norman Jackson,
EBSA’s acting regional director in Philadelphia. “We will hold fiduciaries
accountable when they fail to act in the best interest of plan
participants.”
Filed
in the U.S. District Court for the District of Maryland, the suit seeks to
restore to the plan all losses, including interest and opportunity costs, as
well as the cost of an independent fiduciary. The suit also seeks to
permanently bar the defendants from serving in a fiduciary capacity to any
employee benefit plan covered by ERISA, and appoint an independent fiduciary
with plenary authority and control with respect to the management and
administration of the plan.
The
case is Solis v. Towson Rehabilitation Center LLC et al.
No:
1:12-cv-00117-JKB.
Tara Cantore