U.S. Labor Department sues president of Emergency Consultants Inc. to recover 401(k) assets

Archived News Release — Caution: Information may be out of date.

Traverse City, Michigan – The U.S. Department of Labor has sued the president and fiduciary of the 401(k) plan of Emergency Consultants Inc., Traverse City, for failing to forward contributions to the plan as soon as reasonably feasible, in violation of the Employee Retirement Income Security Act (ERISA).

The department’s lawsuit alleges that from January 2003 through June 2004, Dr. James Johnson, president and 401(k) plan fiduciary of the company, did not remit participant contributions to the plan as soon as he could. The department seeks to recover lost opportunity costs owed to the 401(k) accounts and to require that Dr. Johnson make good any losses resulting from his fiduciary breaches.

“The Labor Department will aggressively pursue individuals who misuse plan assets and will be diligent in recovering losses owed to American workers,” said Paul Baumann, acting director of the department’s Cincinnati Regional Office of the Employee Benefits Security Administration (EBSA), which investigated the case.

The suit, filed in federal district court in Grand Rapids, Michigan, resulted from an investigation conducted by the Detroit district of EBSA’s Cincinnati Regional Office. Employers and workers can reach the Cincinnati office at 859.578.4680 or through EBSA’s toll-free number, 866.444.3272, for help with problems relating to private sector retirement and health plans.

In fiscal year 2007, EBSA achieved monetary results of $1.5 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Chao v. James Johnson M.D.
Civil Action Number 1:08-cv-1126

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Archived News Release — Caution: Information may be out of date.