The Department of Labor sued the fiduciaries of Rehab Consultants Inc., Jefferson, Ga., for making improper loan payments from the company's employee stock ownership plan to parent company Rehab Consultants of Florida and then abandoning the plan, according to court documents.
The suit, filed in U.S. District Court in Atlanta, alleges that five plan committee members — Joseph Gentzel, Mary Ann Gentzel, Grayson Gentzel, Jennifer Heidt Gentzel and Graeme Gentzel — violated ERISA by making more than $170,000 in loan payments from the ESOP to RCF. RCI was dissolved in June 2001, and the plan committee members resigned without providing for continued management of the ESOP, allowing the value of the stock to drop to 79 cents per share from $19.74 per share over a two-year period, the suit alleges. Assets of the plan were unavailable at press time.
The suit seeks a court order requiring the defendants to pay back all losses with interest.