DOL Sues Hospital Owners for Employee Benefits

July 5, 2013 ( – The U.S. Department of Labor (DOL) is suing the owners of a Louisiana hospital for alleged violations of the Employee Retirement Income Security Act (ERISA).

The suit claims the owners of Shreveport-based Doctors Hospital, David and Chris LeBlanc, violated ERISA by using assets belonging to the employee retirement and insurance plans for the benefit of their business operations. The agency is seeking $18,904 in employee retirement contributions and employee-paid premiums for medical and disability insurance coverage.

Doctors Hospital was a small, specialty hospital that ceased operations in February 2010. An Employee Benefits Security Administration (EBSA) investigation revealed that for three months prior to its closing, the defendants used employee retirement contributions and insurance premium payments to run the hospital and pay creditors. The department seeks a court order requiring the restoration of all plan losses and barring the LeBlancs from serving in any capacity in an employee benefit plan.

At the time of the violations, approximately 56 employee participants were affected by the missing retirement contributions and insurance premium payments.