FEDERAL COURT ORDERS ILLINOIS HOME HEALTHCARE COMPANY, PRESIDENT, OWNER, TO RESTORE MORE THAN $85K TO EMPLOYEE RETIREMENT PLAN
Date of Action: Oct. 20, 2022
Type of Action: Employee Retirement Income Security Act judgment
Company/Officers: David Rine and Julieta Mitra
Home Bound Healthcare Inc.
Home Bound Healthcare Inc. 401(k) Plan
Background: On Oct. 20, 2022, Judge Elaine E. Bucklo in the U.S. District Court for the Northern District of Illinois, Eastern Division, found Home Bound Healthcare Inc., company President David Rine and company sole owner, Secretary-Treasurer Julieta Mitra, in default after they failed to respond to a complaint the U.S. Department of Labor filed on March 31, 2022.
The filing, on behalf of the Secretary of Labor, follows an investigation by the department’s Employee Benefits Security Administration that found the now defunct Flossmoor, Illinois-based Home Bound Healthcare Inc., Rine and Mitra failed to remit $59,921 in employee voluntary salary deferral contributions and loan repayments to the Home Bound Healthcare Inc. 401(k) Plan for certain payroll periods between April 1, 2016, through Aug. 16, 2019. The investigation also found that the 401(k) plan suffered an additional $25,481 in lost opportunity costs, calculated through Aug. 3, 2022.
Resolution: To resolve the litigation, Judge Bucklo entered a default judgment on Oct. 20, 2022, that requires Rine, Mitra and Home Bound Healthcare Inc. to do the following:
Restore $85,402, including lost opportunity costs, to the Home Bound Healthcare Inc. 401(k) Plan within 14 days. They must also provide written allocation instructions to the plan custodian to reimburse eligible employees for the losses properly.
Be removed as fiduciaries, service providers, trustees and administrators of the Home Bound Healthcare Inc. 401(k) Plan
Be permanently enjoined from violating ERISA and from serving as fiduciaries or service providers to any ERISA-covered employee benefit plan in the future.
Employers and workers can reach EBSA toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans.
Original source can be found here.
