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Employee Benefits Security Administration

EBSA News Brief

Atlanta GA Office of Public Affairs
For Immediate Release: May 7, 2013
Contact: Michael D'Aquino or Lindsay Williams
Phone: 404-562-2076 or 404-562-2078
Email: d' or
Release Number: 13-786-ATL (91)

Harris v. Dr. Robert B. Chambliss involving
consent judgment in Hardinsburg, Ky.

Date of Action: May 6, 2013

Type of Action: Complaint and consent order and judgment

Name(s) of Defendant (s): Dr. Robert B. Chambliss and Robert B. Chambliss, M.D., PLLC

Allegations: Robert B. Chambliss M.D. and Robert B. Chambliss, M.D., PLLC breached their fiduciary duties by holding over 95 percent of the plan’s assets in two rental cabins; allowing unpaid lodgings at the plan’s rental cabins by Chambliss, his son, his employees; and selling plan assets to Chambliss’s son and daughter-in-law.

Resolution: The court has ordered the defendant to make contributions to the plan so that current and former participants, excluding Chambliss have balances totaling $362,345.56. The defendant will liquidate the plan’s real estate and deposit the proceeds of no less than $129,533.90 into the plan. Chambliss represents that he has deposited $16,295.99, from a loan against insurance he owns, into the plan. Chambliss also represents that the plan received $16,949.94 in net proceeds after he deposited $158,949.94, from the sale of one of the plan’s cabins, into the plan and used that deposit to pay down the plan’s line of credit. Additionally, Chambliss represents that he has deposited $39,000.00, from the sale of cattle, into the plan. Chambliss waives his rights to any benefit from the plan and his account balance will be reallocated amongst the other plan participants. Since the defendants are presently unable to pay the full amount of restitution, they shall pay a total of $182,100.00 over five years. This payment plan is secured by an insurance policy held by Chambliss. AMI Benefit Plan Administrators Inc. is appointed as the independent fiduciary to manage the affairs of the plan. Chambliss and the company are permanently barred from serving or acting as a fiduciary or service provider to any ERISA covered plan.

Court: United States District Court for the Western District of Kentucky

Docket Number: 3:13-cv-00455-JGH

U.S. Department of Labor news materials are accessible at 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.