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EBSA News Brief

U.S. Department of Labor
Office of Public Affairs
Atlanta, Ga.
Release Number: 13-195-ATL (20)

For Immediate Release: January 31, 2013
Contact: Michael D'Aquino
Phone: 404-562-2076
E-mail: D'Aquino.Michael@dol.gov

Solis v. Keith Vinson and Tradition, LLC, involving failure to remit employee
contributions to the company’s health plan in Hendersonville, NC

Date of Action: January 25, 2013

Type of Action: Complaint

Name(s) of Defendant(s): Keith Vinson and Tradition, LLC

Allegations: In 2007, Tradition, LLC, based in Asheville, N.C., established a health plan for its employees through Blue Cross Blue Shield of North Carolina. During the course of an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration, the agency found that Blue Cross Blue Shield terminated the contract with Tradition in September 2009 due to nonpayment of premiums. The defendants continued to withhold employee contributions for the plan, totaling $10,944, through March 24, 2010. During that period, the defendants also collected COBRA premiums from participants, totaling $6,009.

Resolution: The department is asking the court to order the defendants to restore all losses, including interest or lost opportunity costs to the health plan, which occurred as a result of the defendants breach of their fiduciary obligations; appoint a successor fiduciary or administrators, at the defendants' expense, and to permanently enjoin the defendants from serving as fiduciary, or having control over the assets of any employee benefit plan subject to the Employee Retirement Income Security Act.

Court: United States District Court, for the Western District of North Carolina, Asheville Division

Docket Number: 1:13-cv-00023-MR

U.S. Department of Labor materials are accessible at www.dol.gov.  The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling 202-693-7828 or TTY 202-693-7755.