News Brief

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US Labor Department sues Enola, Pa., medical practice to recover lost employee contributions to 401(k) plan

Date of Action: December 9, 2013

Type of Action: Complaint

Name(s) of Defendant(s): Timothy A. Clark, Central Pennsylvania Pulmonary Associates LLC and Central Pennsylvania Pulmonary Associates LLC 401(k) Plan

Allegations: Timothy A. Clark is president of Central Pennsylvania Pulmonary Associates LLC, a medical practice located in Enola, Pa. In 2005, CPPA established the Central Pennsylvania Pulmonary Associates LLC 401(k) plan for its employees.  CPPA and Clark were plan fiduciaries, responsible for making decisions concerning the remittance of elective contributions to the plan. 

An investigation conducted by the U.S. Department of Labor’s Employee Benefits Security Administration found that between June 15, 2010 and April 30, 2011, CPPA and Clark failed to ensure that employee contributions and plan loan repayments were remitted and collected by the plan in a timely manner. 

Resolution: The complaint seeks restitution to the plan of delinquent employee contributions and loan repayments, including lost opportunity costs; the appointment of an independent fiduciary to administer or terminate the plan, and any remaining individual account balances that Clark has in the plan to offset against the losses including the costs of an independent fiduciary.  It also seeks an injunction barring the defendants from serving as fiduciaries to any ERISA-covered plan.

Court: United States District Court for the Middle District of Pennsylvania

Docket Number: 1:13-cv-02949-WWC

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.

EBSA News Brief: 
12/11/2013
Release Number: 
EBSA 13-117