U.S. Department of Labor sues North Carolina health care provider to recover more than $55,000 in 401(k) assets

Atlanta – The U.S. Department of Labor has sued Carolina Express Care P.A. of Knightdale, North Carolina, Dale Everett White and Howell Anderson Vaughan to recover more than $55,000 as restitution for their failure to fulfill their fiduciary duties to the Carolina Express Care P.A. 401(k) Plan and Trust.

The lawsuit, filed in the U.S. District Court for the Eastern District of North Carolina, alleges that the defendants failed to forward $32,136 in employee contributions to the 401(k) plan and to pursue collection of $18,395 in matching employer contributions, as promised in the plan agreement. The suit, which alleges violations of the Employee Retirement Income Security Act (ERISA), seeks a court order requiring the defendants to restore all losses with interest or lost opportunity costs currently estimated at $4,563.

The Labor Department also is seeking the removal of the fiduciaries, to permanently bar them from service to plans governed by ERISA in the future and to appoint an independent fiduciary to manage the plan. Carolina Express Care P.A. provides urgent care and family medical care.

“Fiduciaries are obligated to act solely in the best interests of plan participants. When they fail in their duties, the Labor Department must step in to protect the rights of plan participants,” said R.C. Marshall, regional director of the department’s Employee Benefits Security Administration (EBSA) office in Atlanta.

This case resulted from an investigation conducted by EBSA’s office in Atlanta. Employers and workers can reach the Atlanta office at 404.302.3900 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans. In fiscal year 2008, EBSA achieved monetary results of $1.2 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Solis v. Carolina Express Care P.A.
Civil Action File Number 5:09-cv-00086

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