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.
- Share on
Free Training & Resources
Webinars
Provided by Yooz
White Papers
Provided by Personify Health
Webinars
Provided by SkyStem
Further Reading
Employers will see clearer control over pharmacy benefit costs and their impact on the income statement, with Finance and HR sharing more e...
Maine’s Paid Family and Medical Leave (PFML) program began paying benefits on May 1, 2026. The state DOL runs the program with Af...
With benefits costs climbing and new laws like SECURE 2.0 adding complexity, viewing employee benefits as a simple fixed cost is an outdate...
On Aug. 7, 2025, President Trump signed an executive order expanding 401(k) plans’ ability to include alternative investments – such as...
Instant payouts are replacing traditional paychecks for millions of workers, according to a new PYMENTS Intelligence Report titled “Insta...
Some of your year-end health plan responsibilities have lifted, thanks to eleventh-hour legislation from Congress. Plan sponsors that me...
