U.S. Department of Labor sues owner of defunct Florida home health care company to obtain restitution of funds to company's pension plan

Atlanta – The U.S. Department of Labor has sued Floyd Seibert for violations of the Employee Retirement Income Security Act (ERISA).

Filed in the U.S. District Court for the Middle District of Florida, the complaint alleges that the defendant violated his fiduciary responsibilities when he failed to discharge his duties with respect to the Central Home Care Services 401(k) pension plan by engaging in prohibited transactions.

The Labor Department is seeking a court order to require that the defendant restore to the plan the opportunity costs lost on the prohibited transactions with the plan. It also asks the court to offset the defendant's plan account balance in order to make restitution to the plan and bar him from serving in a fiduciary capacity to any plan covered by ERISA in the future.

"The law clearly prohibits those entrusted with the assets of an employee benefit plan from intentionally mishandling those funds. The Department of Labor will vigorously pursue such violations to restore the pension assets to their rightful purpose," said Phyllis C. Borzi, assistant secretary for the Labor Department's Employee Benefits Security Administration (EBSA).

In a related criminal case, Seibert pleaded guilty and was sentenced to federal prison in 2007 for embezzling from his company's pension plan and for Medicare fraud. At the time of sentencing, U.S. District Court Judge James E. Gritzner ordered Seibert to pay restitution in the amount of $2,438,141.00 regarding the Medicare fraud and $3,281,199.22 regarding the employee pension fund, for a total restitution amount of $5,719,340.22.

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. Employers and workers can reach EBSA's Atlanta Regional Office at 404-302-3900 or toll-free at 866-444-3272 for help with problems relating to private sector retirement and health plans. For more information, see www.dol.gov/ebsa.

Solis v. Seibert
(Civil Action File Number 8:09-cv-1726-VMC-AEP)

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