The former CEO of Baltimore Behavioral Health Inc. was ordered to pay $60,750 for failing to deposit workers' contributions in the organization's retirement plan, the Department of Labor announced Thursday.
BBH, a non profit drug treatment and mental health clinic on West Pratt Street, filed for Chapter 11 bankruptcy in December 2012. The clinic was found in a 2010 Baltimore Sun investigation to have unusually high Medicaid billings and steep salaries among family members who previously operated the center.
The Labor Department had filed a lawsuit Nov. 1 in U.S. District Court in Baltimore alleging that William Kristen Hathaway did not remit contributions from October 2009 through April 2010. After an investigation by the department's Employee Benefits Security Administration, the government alleged that Hathaway and BHH pooled the workers' contributions with the clinic's assets.
The court entered a default judgment against Hathaway after he failed to plead or submit a defense.
Hathaway and officials of BBH could not be reached on Thursday.