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Houston, Texas - The U.S. Department of Labor
has sued the former owner of defunct Kemil Inc., Houston, Texas, for
failing to remit $15,174 in employee-paid health premiums to Blue
Cross/Blue Shield HMO of Texas.
“This action demonstrates our commitment to protect
the hard-earned benefits of American workers,” said Roger Hilburn,
director of the department’s Dallas regional office of the Employee
Benefits Security Administration (EBSA), which investigated the case.
The lawsuit, filed in the U.S. District Court for the
Southern District of Texas in Houston, alleges that Gary Bean failed to
forward insurance premiums withheld from Kemil Inc. employee paychecks
from January 1, 2000 through December 21, 2001. This resulted in unpaid
medical bills amounting to $17,000. Bean’s actions violated the Employee
Retirement Income Security Act (ERISA).
Now closed, the small office furniture manufacturer was
the administrator of the health plan which had 13 participants.
Employees with similar problems who are not yet the
subject of an investigation by EBSA may be eligible to participate in the
department’s Voluntary Fiduciary Correction Program (VFCP).
Participation in the program requires employers to correct all violations
but allows them to avoid EBSA enforcement actions and civil penalties as
well as any applicable excise taxes. For more information about the VFCP,
see www.dol.gov/ebsa.
In fiscal year 2004, EBSA achieved record monetary
results of $3.1 billion related to the pension, 401(k), health and other
benefits of millions of American workers and their families. Employers and
workers can reach EBSA’s Dallas regional office at 214.767.6831 or
through its toll-free number, 1.866.444.EBSA (3272), for help with
problems related to private-sector retirement and health plans.
(Chao v. Bean)
Civil Action No. H-05-2765 |
