Judge appoints independent fiduciary to terminate Nutrition Clinic 401(k) Plan in Rockford, Ill., and provide funds to participants

Date of Action: Jan. 29, 2013

Type of Action: Default judgment

Names of Defendant: Gautam Gupta, Gautam Gupta, M.D., doing business as, Nutrition Clinic 401(k) Plan

Allegations: Gupta failed to terminate the Gautam Gupta, M.D., doing business as, 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, M.D. took over the clients and offices of Nutrition Clinic under a business entity called ThinFast M.D. Dr. Ghani accepted no formal role with respect to the Gautam Gupta, M.D doing business as  Nutrition Clinic 401(k) Plan.

Resolution: The judgment removes Gupta as fiduciary for the Gautam Gupta, M.D. doing business as, Nutrition Clinic 401(k) Plan and permanently enjoins him from violating the provisions of Title I of ERISA and serving as a fiduciary to any ERISA-covered plan in the future. The judgment also appoints an independent fiduciary to distribute the plan’s assets and to terminate the plan.

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.