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Release Date: October 22, 2008
Release Number: 08-1490-ATL
Contact Name: Diana Petterson/Elizabeth Todd
Phone Number: 972.850.4709/972.850.4710
Memphis, Tennessee – The U.S. Department of Labor has sued Dr. Frank H. Martin, fiduciary of the retirement plan of a cardiology clinic in Memphis, for failing to collect $116,460 in mandatory contributions owed to the Cardiovascular Specialties P.C. 401(k) Profit Sharing Plan employer 401(k) in violation of the Employee Retirement Income Security Act (ERISA).
“The department helps workers obtain benefits when plan assets are either misused or plans are abandoned,” said R.C. Marshall, director of the department’s Atlanta Regional Office of the Employee Benefits Security Administration (EBSA), which investigated the case.
The Labor Department’s lawsuit seeks to recover delinquent employer matching contributions and Safe Harbor Non-elective Contributions from the 2004 through 2006 plan years. The employer remitted the contributions made by employees into the 401(k) plan but did not contribute the required employer contributions, and did not contribute the required safe harbor contributions to the account of each eligible participant.
The suit seeks to recover lost earnings on the contributions, remove Martin as the plan fiduciary, and appoint an independent fiduciary to terminate the plan and distribute its assets. The suit also asks the court to permanently bar Martin from serving as a fiduciary to any ERISA-covered employee benefits plan in the future.
The cardiology clinic that operated the retirement plan ceased operations in July 2006.
The suit was filed in federal district court in Memphis. Employers and workers can reach EBSA’s Atlanta Regional Office at 404.302.3900 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans.
In fiscal year 2007, EBSA achieved monetary results of $1.5 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.
Chao v. Cardiovascular Specialties P.C. Civil Action Number 2:08-cv-02700-JPM-tmp
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