US Department of Labor files suit to terminate Nutrition Clinic 401(k) Plan in Rockford, Ill., and provide funds to participants

Date of Action: Oct. 10, 2012

Type of Action: Complaint

Names of Defendant: Gautam Gupta, Nutrition Clinic 401(k) Plan

Allegations: Gupta failed to terminate the Nutrition Clinic 401(k) Plan and ensure the plan’s assets were distributed to employees after the company ceased operations in 2011. Gupta failed to file any business documents with the Illinois Secretary of State regarding the company’s status. His whereabouts are unknown and he is on the Federal Bureau of Investigation’s most wanted list.

As of June 6, 2012, the plan had 26 participants and vested accounts totaling $521,932.

In 2011 or early 2012, Ehtesham J.A. Ghani took over the clients and offices of Nutrition Clinic under a business entity called ThinFast M.D. However, it is unknown if Ghani entered into a purchase agreement with Gupta or Nutritional Clinic, but he took no formal role with the Nutrition Clinic 401(k) Plan.

Resolution: The suit seeks to remove Gupta as fiduciary for the Nutrition Clinic 401(k) Plan and appoint an independent fiduciary to distribute the plan’s assets and to terminate the plan. It also seeks to permanently enjoin Gupta from serving as a fiduciary to any ERISA-covered plan in the future.

Court: United States District Court, Northern District of Illinois, Rockford, Ill.

Docket Number: 1:12-cv-08098

U.S. Department of Labor materials are accessible at www.dol.gov.  The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling 202-693-7828 or TTY 202-693-7755.