U.S. Labor Department sues to protect assets of Long Beach retirement plan for medical workers

Archived News Release — Caution: Information may be out of date.

San Francisco – The U.S. Department of Labor has sued a Long Beach pediatrician and his professional corporation for allegedly misusing retirement plan assets and refusing to distribute account balances to terminated participants.

The suit, filed in the U.S. District Court for the Central District of California, alleges that Hezekiah N. Moore, M.D., individually and as a corporation, violated the Employee Retirement Income Security Act (ERISA) by imprudently investing approximately $172,500 in plan assets and failing to distribute plan funds. The defendants’ actions may have resulted in financial losses for plan participants and their beneficiaries.

“The law clearly requires those who administer employee benefit plans to do so in a careful, prudent and honest manner solely for the benefit of participants,” said Bradford P. Campbell, assistant secretary for the department’s Employee Benefits Security Administration (EBSA). “This case demonstrates the department’s commitment to take action to protect the benefits promised to workers.”

The suit seeks to restore any losses owed to the plan, remove Hezekiah N. Moore, M.D. of La Palma, California, as the fiduciary, permanently bar him from serving in that function and appoint an independent fiduciary to oversee the plan. The independent fiduciary will be responsible for distributing the assets to eligible employees and beneficiaries.

The professional corporation is a medical practice specializing in pediatrics.

The action resulted from an investigation conducted by EBSA’s Los Angeles Regional Office. Employers and workers with questions or concerns regarding their private sector pension and health plans can contact the regional office at 626.229.1000 or toll-free at 866.444.3272. Information is also available on the agency’s Web site at www.dol.gov/ebsa. In fiscal year 2007, EBSA achieved monetary results of $1.5 billion related to 401(k), health and other benefits for millions of American workers and their families.

(Chao v. Hezekiah N. Moore, M.D., P.C.)
Civil Action No. CV08-04703 ODW (FFMx)

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Archived News Release — Caution: Information may be out of date.