WASHINGTON — The U.S. Department of Labor has sued Kelly Bailey, owner of SCK Management Services Inc., doing business as PROS Rehabilitation, in an effort to recover approximately $136,484 in missing employee retirement contributions and approximately $24,464 in losses from appreciation accruing on those missing funds. The department's lawsuit, filed in U.S. District Court for the Northern District of Texas, Dallas Division, alleges that Bailey violated the Employee Retirement Income Security Act by using assets belonging to the employee retirement plan for the benefit of her business operations.
"Kelly Bailey had a duty to manage and protect her employees' benefit plans and their assets, and she failed to do that," said Deborah Perry, director of the Dallas Regional Office of the department's Employee Benefits Security Administration, which investigated this case. "The department will take every action necessary to restore plan assets that were not properly preserved for the company's workers." An Employee Benefits Security Administration investigation revealed that for more than two years, Bailey withheld from employees' pay money intended for retirement plan contributions, but did not forward those funds to the retirement plan. The department seeks a court order requiring the restoration of all plan losses.
PROS Rehabilitation, located in Keene, engaged in providing therapy services to skilled nursing facilities throughout Texas. At the time of the violations, 18 employee participants were affected by the missing retirement contributions. The department's complaint was filed by the Dallas Regional Solicitor's Office.
Employers and workers can reach EBSA's Dallas office at 972-850-4500 or toll free at 866-444-3272 for help with problems relating to private-sector retirement and health plans. Additional information can be found at http://www.dol.gov/ebsa/.
Perez v. Kelly Bailey, et al. Civil Action Number: 3:14-cv-03053-D
