U.S. Labor Department investigation results in consent judgment requiring Zebulon, NC, health care provider to repay more than $73,000 to 401(k) plan

Raleigh, NC - The U.S. Department of Labor has obtained a consent judgment requiring Dale Everett White and Howell Anderson Vaughan to restore $73,432.25 to the Carolina Express Care P.A. 401(k) plan and removing them as fiduciaries of the plan. The judgment resulted from an investigation into alleged violations of the Employee Retirement Income Security Act (ERISA).

The court action, entered by the U.S. District Court for the Eastern District of North Carolina, states that the defendants breached their fiduciary responsibilities. The judgment also appoints Larry Lefoldt as the independent fiduciary to administer the plan, requires the defendants to reimburse the plan for Lefoldt's fees and expenses, and permanently bars the defendants from serving in the future as fiduciaries of any employee benefit plan covered by ERISA.

"The Labor Department is pleased that plan participants have had their retirement savings fully restored," said R.C. Marshall, regional director of the department's Employee Benefits Security Administration (EBSA) office in Atlanta.

The judgment resolves a lawsuit filed in March 2009 by the department against the defendants for allegedly failing to forward employee contributions to the plan and to make timely employer contributions as promised in the plan agreement. In the consent judgment, the defendants agreed to all of the allegations contained in the complaint.

Employers with similar problems who are not yet subjects of investigations by the Employee Benefits Security Administration (EBSA) may be eligible to participate in the department's Voluntary Fiduciary Correction Program. Participation requires employers to make workers whole but allows them to avoid EBSA enforcement actions and civil penalties as well as any applicable excise taxes.

In fiscal year 2009, EBSA achieved monetary results of $1.3 billion related to pension, 401(k), health and other benefits for millions of American workers and their families. This case resulted from an investigation conducted by EBSA's Atlanta Regional Office. Employers and workers can reach that 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. Carolina Express Care P.A.
Civil Action File Number 5:09-cv-00086-F

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