Towson Rehabilitation Center LLC, a Towson physical, occupational and speech therapy provider, must restore more than $29,000 in interest to the company's 401(k) retirement plan, according to a consent judgment obtained in federal court by the U.S. Labor Department.
In a lawsuit filed last January, the labor department alleged that since January 2006, Towson Rehabilitation and CEO Howard Neels failed to pay employee contributions to the plan, paid some employee contributions late without interest and failed to segregate the plan's assets from the company's assets. The judgment was filed Jan. 18 in U.S. District Court in Baltimore.
Besides paying the $29,168 in pre-judgment interest, the company must pay a penalty of $5,834 and cannot act as a service provider to any plan covered by the Employee Retirement Income Security Act. An independent fiduciary will be given the authority to administer the plan, distribute assets to its participants and terminate the plan, the Labor Department said.Copyright © 2015, The Baltimore Sun