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Release Date: May 3, 1999
Release Number:
USDL-PWBA-99-54-5-3
Issued by the Office of Public Affairs in Dallas,
Texas Contact Name: Diana Petterson or Beverly Sepulveda
(214)
767-4777, ext. 222 or ext. 221
Sharon Morrissey
(202)
219-8921
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The U. S. Department of Labor sued a Harris County, Tex. company
and its 401(k) plan official for failing to forward to the plan employee
contributions withheld from their paychecks, resulting in losses to the
participants of $6,986. |
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Defendants in the case include the Pin Oak Medical/Surgical
Associates, located in Houston, the company owner Dr. Lynn R. Gibbs, who also
was the plan trustee, and the plan. |
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According to the department’s lawsuit, beginning in February
1995, Dr. Gibbs allegedly withheld contributions from his employees’
paychecks for the 401(k) plan he set up in January 1994, but failed to forward
the funds to the plan in a timely fashion. The plan had seven participants and
$17,374 in assets as of Dec. 31, 1995. |
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Defendants recently repaid the plan for all losses with interest.
The department is seeking an injunction and the removal of Gibbs from his
fiduciary position and a permanent bar against him from serving any plan
covered by the Employee Retirement Income Security Act. The lawsuit also seeks
to have an independent successor trustee appointed to oversee the plan.
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The lawsuit, filed April 30 in federal district court in Houston,
is the result of an investigation conducted by the Dallas Regional Office of
the department’s Pension and Welfare Benefits Administration into alleged
violations of federal pension law. |
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(Herman v. Pin Oak Medical/Surgical Associates.)
Civil Action
No. H 991324 |
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U.S. Department of
Labor news releases are accessible on the Internet. The information in this
news release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing your
request. Call 202.693.7773 or TTY 202.693.7775. |
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