TOWSON, Md. The U.S. Department of Labor has filed a lawsuit against Towson Rehabilitation Center LLC and chief executive officer Howard Neels for failing to remit employees’ contributions to the company’s 401(k) plan, in violation of the Employee Retirement Income Security Act.
The suit resulted from an investigation by the Washington District Office of the department’s Employee Benefits Security Administration, which found that, since January 2006, the defendants have 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.
“This case clearly demonstrates a breach of fiduciary duty,” said Norman Jackson, EBSA’s acting regional director in Philadelphia. “We will hold fiduciaries accountable when they fail to act in the best interest of plan participants.”
Filed in the U.S. District Court for the District of Maryland, the suit seeks to restore to the plan all losses, including interest and opportunity costs, as well as the cost of an independent fiduciary. The suit also seeks to permanently bar the defendants from serving in a fiduciary capacity to any employee benefit plan covered by ERISA, and appoint an independent fiduciary with plenary authority and control with respect to the management and administration of the plan.
The case was filed by the Labor Department’s Regional Office of the Solicitor in Philadelphia. For help with problems related to private sector pension and health plans, employers and workers can contact EBSA’s Washington office at 202-693-8700 or toll-free at 866-444-3272. Additional information can be found at www.dol.gov/ebsa.
Solis v. Towson Rehabilitation Center LLC et al.
Civil Action Number: 1:12-cv-00117-JKB
U.S. Department of Labor news 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.