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Towson Rehabilitation Ordered To Pay $29,168 to 401K

The company must also pay a penalty of $5,834.

The U.S. Department of Labor obtained a consent judgement on Friday ordering Towson Rehabilitation and its owner Howard Neels to restore $29,168 in pre-judgement interest to the company's 401K plan.

Since January 2006, the company faced allegations that the defendants in the case failed to remit employee contributions to the plan, and failed to separate the plan's assets from company's general assets, according to a news release.

Towson Rehabilitation must also pay a penalty of $5,834, according to the release. The judgement also calls for the defendants, which include chief executive officer and owner Howard Neels, from ever again acting as a fiduciary or service provider to any plan covered by the Employee Retirement Income Security Act.

The defendants must also cooperate in the termination of the plan and distribution of its assets, pay for the service of an independent fiduciary who is charged with administering the plan, distributing its assets to participants and ultimately terminating the plan.

The judgement resolves a lawsuit filed by the U.S. Department of Labor in January 2012, according to the release.

Representatives from Towson Rehabilitation could not be reached for comment.

Walter January 23, 2013 at 06:57 PM
Emploee? Does anybody from Patch actually read what is written?

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