Health Clinic Sued over Missing 403(b) Contributions

August 9, 2011 ( - A staff member at Baltimore Behavioral Health Inc. has filed a lawsuit alleging that officials there "diverted and stole" thousands of dollars from employees by failing to deposit payroll deductions into their retirement and disability plans.

The Baltimore Sun reports that the suit claims more than 100 employees “suffered substantial financial losses in both 2009 and 2010 as a result of the diversion and theft of employee contributions that should have been placed in the Retirement and Disability Plans.”  

The U.S. Department of Labor has been conducting an inquiry into BBH’s employee retirement plan, following claims by former employees that money deducted from their paychecks never reached their retirement accounts as required (see DoL Investigating Missing Contributions to Health Clinic 403(b)).  

According to the news report, the federal suit was filed by Gail Mink, the West Platt Street clinic’s admissions director, on behalf of herself and all other participants in the clinic’s employee retirement plans. BBH is named as a defendant along with William “Kris” Hathaway, its chief executive. It seeks repayment with interest, and also seeks damages equal to triple the employee contributions that allegedly were not deposited.  

The Sun said BBH officials declined to comment. Hathaway did not return a call Wednesday seeking comment, nor did Morris A. Hill and Sandra K. Hill, two other BBH officials accused in the suit of having participated in decisions not to pay back employee contributions.