Execs ordered to repay more than $600K to retirement plan
Here are two hospital executives who found themselves facing harsh penalties after a Department of Labor (DOL) investigation uncovered some very serious retirement-plan violations.
According to a DOL investigation, the CEO and CFO of USA Star Healthcare Group failed to remit $400K-plus in contributions and loan payments that had been withheld from workers’ checks – and instead held onto those funds and added them to other hospital accounts.
The execs also failed to forward workers’ contributions to the plan in a timely manner, which results in deposits being up to 301 days late, according to the DOL.
In the end, the execs were ordered to repay $600,692 plus interest to the plan. Also, they must pay a 20% penalty and are barred from servicing as service providers or fiduciaries to any ERISA-covered retirement plan in the future.
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