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Miami, Florida - A federal district court in
Florida has ordered a Bay Harbor Islands dentist and the Morton Rosenbluth
D.D.S. Professional Association to comply with a July 2004 judgment
requiring them to make restitution to the retirement plans of the dental
practice.
“The Labor Department is committed to taking every
step possible to hold accountable those who misuse the assets of their
workers’ retirement plans,” said Ann L. Combs, assistant secretary of
labor for employee benefits security. “These defendants diverted plan
assets for personal gain, which the department will not tolerate.”
The department sought the contempt order after dentist
Morton Rosenbluth and his association failed to comply with a 2004
judgment requiring them to repay $205,787, plus interest, as restitution
for diverting plan assets for their own benefit. Under the judgment,
Rosenbluth was also barred from service to any plan governed by the
Employee Retirement Income Security Act (ERISA).
In its June 2003 lawsuit, the department alleged that
Rosenbluth used assets of the association’s money purchase and profit
sharing plans to pay personal and corporate taxes and penalties owed to
the Internal Revenue Service. He also failed to allocate any of the profit
sharing plan assets to five eligible participants and to make mandatory
employer contributions owed to the money purchase plan from 1999 through
2002.
The contempt order resulted from an investigation
conducted by the Employee Benefits Security Administration’s (EBSA)
Miami district office. Employers and workers can contact the office at
954.424.4022 or EBSA’s toll free number, 1.866.444.EBSA (3272), for help
with any problems relating to private-sector pension and health plans.
In fiscal year 2004, EBSA achieved record monetary
results of $3.1 billion related to the pension, 401(k), health and other
benefits of millions of American workers and their families.
(Chao v. Rosenbluth)
Civil Action No. 03-CV-21676 |
