A DoL news release announcing the suit filed in federal court in Florida against Floyd Seibert said government lawyers are asking a judge to force Seibert to restore opportunity costs lost to the 401(k) plan atCentral Home Care Services, Inc., and for the court to order money withdrawn from Seibert’s personal plan account as part of the assets to be returned.
The DoL suit charged Seibert with engaging in prohibited transactions under theEmployee Retirement Income Security Act (ERISA).
In a related criminal case, Seibert pleaded guilty and was sentenced to federal prison in 2007 for embezzling from the 401(k) plan and for Medicare fraud. At the time of sentencing, U.S. District Court Judge James E. Gritzner ordered Seibert to pay $5.7 million in restitution.
In the criminal case, authorities alleged that between April 1999 and October 2001, Seibert transferred funds from the retirement and medical plans of Central Home Care Services, Inc. to Health Care International Holdings in exchange for bonds (see FL Business Owner Siphons Nearly $4M from Benefit Plans ). However, Health Care International Holdings was a shell company with only $1,000 in assets.
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