Printer
Friendly Version
Release Date: March 8, 2006
Release Number: 06-381-PHI (EBSA 023)
Contact Name: Kate Dugan
Phone Number: 215.861.5101
Alexandria, Virginia - The U.S. Department of
Labor has obtained a consent judgment requiring Therapy Management
Services Inc. of Alexandria, Virginia, and its president, Brenda Hunt,
to restore $32,899 to the company’s 401(k) plan.
The judgment follows a Labor Department investigation
that found the defendants violated the Employee Retirement Income
Security Act (ERISA) by failing to forward employee contributions to the
pension plan or remit them in a timely fashion. Hunt, while serving as
fiduciary, failed to ensure that the plan contributions were segregated
from the company’s general operating fund and deposited in the plan.
“Plan fiduciaries have a duty to act responsibly
with the funds entrusted to them,” says Mabel Capolongo, director of
the department’s Philadelphia regional office of the Employee Benefits
Security Administration (EBSA). “This legal action demonstrates the
department’s commitment to protect the hardworking men and women who
entrust their retirement funds to a company plan.”
The judgment resolves a lawsuit filed by the Labor
Department in December 2005.
The judgment removes Hunt and the company from their
positions with the plan and appoints Jackie Carmichael as an independent
fiduciary with authority to administer, manage and dispose of plan
assets, including final disbursements to participants. In addition, Hunt
and Therapy Management are permanently enjoined from serving as
trustees, fiduciaries, advisors or administrators of any ERISA-covered
plan.
The judgment, entered in federal district court in
Virginia, resulted from an investigation conducted by EBSA’s
Philadelphia regional office. In fiscal year 2005, EBSA achieved
monetary results of $1.7 billion related to pension, 401(k), health and
other benefits for millions of American workers and their families.
Employers and workers can reach the Washington district office at
301.713.2000 or through EBSA’s toll-free number, 1.866.444.EBSA
(3272), for help with problems relating to private-sector retirement and
health plans.
(Chao v. Therapy Management Services, Inc., and
Brenda M. Hunt)
Civil Action No. 1:05-CV-1366
U.S. Department of Labor news releases are accessible on the
Department's Newsroom
page. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7765 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit the
Department's Compliance
Assistance page.
|