U.S. Labor Department recovers nearly $63,000 for participants of Washington, D.C., pension and profit-sharing plans

Archived News Release — Caution: Information may be out of date.

Washington - The U.S. Department of Labor has obtained a consent judgment requiring a District of Columbia medical practice and the former trustee of the corporation’s pension and profit-sharing plans to pay $62,937 to those plans. The judgment resolves a lawsuit alleging violations of the Employee Retirement Income Security Act (ERISA) by Karyle Z. Fowler M.D., P.C. and Wanda Robinson.

“This action underscores the Labor Department’s commitment to hold fiduciaries accountable when they fail to responsibly manage the employee benefit assets they hold in trust,” said Mabel Capolongo, director of EBSA’s Philadelphia Regional Office.

The department sued the defendants in U.S. District Court for the District of Columbia for failing to annually collect required employer contributions owed to the pension plan in 1995, 1996 and 1997. The department also alleged that the defendants failed to honor participant requests for distributions from both plans. The profit-sharing plan had 19 participants and the money purchase plan had 17 participants, according to the latest information available to the Labor Department.

Metro Benefits Inc. was appointed to be the independent fiduciary of the plans under a court order entered in October 2006. Under the judgment, Fowler P.C. and Wanda Robinson are required to pay the costs of the independent fiduciary and $6,294 in civil penalties. Robinson also is permanently barred from serving as trustee, fiduciary, advisor or administrator to any employee benefit plan governed by ERISA.

Employers and workers can reach EBSA’s Philadelphia office at 215.861.5300 or toll-free at 1.866.444.EBSA (3272) for help with problems relating to private sector retirement and health plans. Information is also available from the agency’s Web site at www.dol.gov/ebsa. In fiscal year 2006, EBSA achieved monetary results of $1.4 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Chao v. Wanda Robinson
Civil Action Number: 04-01653-RCL-JMF

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Archived News Release — Caution: Information may be out of date.