Compliance February 7, 2012

DoL Sues Company for Failure to Remit Contributions

 

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. 

 

 

Reported by

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.” 

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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.

 

Deals & People February 7, 2012

TD Ameritrade Appoints President

Tom Nally was appointed president of TD Ameritrade Institutional, the firm’s business unit serving independent registered investment advisers (RIAs).  
Reported by

Nally will replace Tom Bradley, who will become TD Ameritrade Holding Corp.’s president of retail distribution. Bradley is taking the position of John Bunch, who resigned from his position as president of retail distribution effective February 10 to take the top leadership role at an investment advisory firm.

Nally has been with the company since 1994 and served as a 12-year veteran of Bradley’s management team. He most recently oversaw all aspects of the business unit’s sales. He and his team were responsible for developing new RIA relationships and delivering practice management solutions that assist RIAs in achieving their strategic business objectives.

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Nally has held a variety of positions for the firm and has had responsibility for trading, fixed income, adviser relations, client service, adviser technology, account services and operations serving the independent RIAs who custody assets with TD Ameritrade Institutional.

Nally will also join the company’s senior operating committee, a group of senior executives who are responsible for the strategic direction and decision-making at the company. The executives report directly to Fred Tomczyk, president and chief executive officer.

 

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