Subscribe Now!
Free Daily News, Jobs, Webcasts, Discussions
Display and Distribute
Your Job Openings
COVID-19 News
COVID-19 Webcasts

Featured Jobs

Plan Administrator

Forrestall CPAs, LLC
(Buford GA)

Forrestall CPAs, LLC logo

Retirement Plan Administration Consultant

TSC
(Telecommute / Edina MN)

TSC logo

Free Daily News and Jobs

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Get the BenefitsLink app LinkedIn
Twitter
Facebook

By Date   |   By Company Name


View More Press Releases by Employee Benefits Security Administration [EBSA], U.S. Department of Labor

Press release:

DOL Investigation Results in Federal Court Ordering Tennessee Eye Care Company and Former Fund Trustees in Profit-Sharing Plan Theft to Pay $971,622 in Restitution

Issued by: Employee Benefits Security Administration [EBSA], U.S. Department of Labor

Date: May 10, 2018

COOKEVILLE, TN - The U.S. District Court for the Middle District of Tennessee, Northeastern Division, has ordered eastern Tennessee eye care company Eye Centers of Tennessee LLC, its owner Dr. Larry E. Patterson, and its office administrator Raymond K. Mays to pay $971,622 in restitution to the company's 401(k) profit-sharing plan after an investigation by the U.S. Department of Labor's Employee Benefits Security Administration (EBSA) found violations of the Employee Retirement Income Security Act (ERISA). This restitution amount is in addition to the $788,850 the defendants paid to the plan in May 2016 as restitution in a related criminal matter.

The court also ordered that Eye Centers of Tennessee LLC, Dr. Patterson, and Mr. Mays be removed as fiduciaries, and permanently enjoined from serving as fiduciaries to any future employee benefit plans.

The EBSA investigation determined that Patterson and Mays - serving as the profit-sharing plan's trustees - used the plan to pay $344,225 to Park Street Properties, owned by Mays. They also transferred $782,250 in plan assets to Maple Leaf Development LLC, which was owned by Patterson and Mays; $17,077 to Upper Cumberland Building Consultants LLC, which was owned by Mays' brother; and $50,000 worth of plan's assets back to Eye Centers of Tennessee.

In addition, Patterson and May used plan assets to purchase an 8,562-square-foot commercial property in 2006 for $285,000, and secured a mortgage for $325,000 for the property, which was then leased to the Pit Barbell Club - owned by Mays' wife - for $5,000 per year. The monthly lease payments were only about one-sixth of the profit-sharing plan's $2,618 monthly mortgage on the property.

"Employees who plan for the future and contribute to a profit-sharing plan deserve to know their money is being used in a lawful manner," said Isabel Colon, EBSA Regional Director in Atlanta. "The U.S. Department of Labor will continue to investigate any action that threatens retirement benefits employees have earned and will use any means available to ensure employers and fiduciaries who misuse funds are held accountable."

"The U.S. Department of Labor will litigate cases aggressively against fiduciaries who have committed gross violations of the pension laws," said Stanley Keen, Regional Solicitor in Atlanta. "Our goal is not only to protect employees who have suffered losses from their pension plans and to prevent violations in the future, but to ensure that other employers who follow the law are operating on a level playing field."

View More Press Releases by Employee Benefits Security Administration [EBSA], U.S. Department of Labor


This is a press release issued by the company named above. BenefitsLink is not the author. Use of any information obtained from this release is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by BenefitsLink.

© 2020 BenefitsLink.com, Inc.