Stoughton, Massachusetts Dentist Restores Over $118,000 to Employee Pension Plan to Settle U.S. Labor Department Lawsuit

Archived News Release — Caution: Information may be out of date.

Boston, Massachusetts - A Stoughton, Massachusetts dentist has restored more than $118,000 in misused assets to the profit sharing plan of the dental practice’s employees, according to a consent judgment and order obtained by the U.S. Department of Labor for alleged violations of the Employee Retirement Income Security Act (ERISA).

Under the judgment and order, Robert E. Chavez, D.D.S. is permanently barred from service as a fiduciary to any ERISA-covered plan and is ordered to appoint an independent fiduciary to serve as trustee of the profit sharing plan. Chavez has already restored $118,203 in restitution to the plan.

Chavez was the plan’s trustee and was responsible for administering the assets of the plan. In its lawsuit, filed in U.S. District Court for the District of Massachusetts, the Labor Department alleged that he used plan assets to make loans to entities in which he had a direct personal interest. He also allegedly failed to collect money owed to the plan on the outstanding loans.

“Those who manage workers’ retirement plans have a legal responsibility to properly administer and protect the funds entrusted to them,” said Ann L. Combs, assistant secretary of labor for the Employee Benefits Security Administration (EBSA). “The Labor Department will not hesitate to act to ensure that workers are paid the benefits they are promised.”

The legal action resulted from an investigation conducted by the Boston regional office of EBSA. 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 contact the Boston regional office at 617.565.9600 or EBSA’s toll-free number, 1.866.444.EBSA (3272), for more information on the requirements of ERISA or for help with problems relating to private-sector pension and health plans. Additional information can be found at www.dol.gov/ebsa.

(Chao v Robert E. Chavez, D.D.S.)
Civil Action Number 06-CA-11710-DPW

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Archived News Release — Caution: Information may be out of date.

Contact Name: John M. Chavez
Phone Number: 617.565.2075