Health Clinic Sued for Withholding Retirement Plan Records

November 4, 2011 ( - The U.S. Department of Labor is suing Baltimore Behavioral Health Inc. and chief executive William "Kris" Hathaway for allegedly failing to turn over payroll and retirement account records that had been demanded by federal investigators.

The Baltimore Sun reports that the DoL’s Employee Benefits Security Administration has been investigating alleged violations involving the 403(b) retirement plan of the West Pratt Street mental health clinic (see DoL Investigating Missing Contributions to Health Clinic 403(b)).  

“The company’s refusal to provide the requested documents is hindering our investigation and it must comply immediately,” Mabel Capolongo, director of the administration’s Philadelphia regional office, said in a statement, according to the Sun.

The lawsuit, filed in federal court in Baltimore, alleges that the clinic failed to comply with two administrative subpoenas issued in May.

The federal government opened its inquiry late last year after former workers said money deducted from their paychecks as far back as 2009 never reached their retirement plan accounts (see Health Clinic Sued over Missing 403(b) Contributions).