EBSA News Brief
U.S. Department of Labor
For Immediate Release: January 23, 2013
US Labor Department recovers more than $29,000 to 401(k) plan of Towson Rehabilitation Center LLC in Towson, Md.
Date of Action: Jan. 18, 2013
Type of Action: Consent judgment
Name(s) of Defendant(s): Towson Rehabilitation LLC, chief executive officer Howard Neels, and the Towson Rehabilitation 401(k) plan
Allegations: Since January 2006, the defendants 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.
Resolution: The U.S. Department of Labor has obtained a consent judgment ordering Towson Rehabilitation LLC and its owner, Howard Neels, to restore $29,168 in pre-judgment interest to the company's 401(k) plan. The company must also pay a mandatory penalty of $5,834. Under the judgment, the defendants are permanently enjoined from acting as a fiduciary or service provider to any plan covered by the Employee Retirement Income Security Act; have the duty to cooperate fully in the termination of the plan and the distribution of its assets, to the extent that such cooperation is required; and are required to pay for the service of an independent fiduciary who is charged with the plenary authority to administer the plan, distribute assets to its' participants; and terminate the plan.
The judgment resolves a lawsuit filed by the department in January 2012.
Court: United States District Court for the District of Maryland
Docket Number: 1:12-cv-00117-JKB
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.