Hartselle ambulance company ordered to pay restitution

Jan. 05--Ambulance service provider LifeCare of Alabama Inc. has been ordered by the U.S. Department of Labor to pay restitution for not sending thousands of dollars in employee contributions to the service provider of the company's 401(k) plan.

The order was issued last month to the Hartselle company.

An investigation by the U.S. Department of Labor's Employee Benefits Security Administration found that from September 2005 to March 2010, the company and CEO Susan Clingman-Banks did not forward at least $63,934.69 to the 401(k) provider and allowed the funds to be combined with general company assets, according to a news release from the Department of Labor.

Michael D'Aquino, of the Department of Labor's Office of Public Affairs, said about 19 employees are contributing to the 401(k) plan. He would not say how the department learned about LifeCare's mishandling of the funds.

In the consent judgment and order, LifeCare agreed to pay $78,880 in restitution. The amount includes the employee contributions, plus $14,945 in interest, on those funds through Nov. 30.

The company must pay $39,000 of the money owed by Jan. 15, and the remaining balance and accumulated interest by March 31.

In addition, Banks and the company no longer is allowed to act as a fiduciary, trustee, agent or representative to any employee benefit plan. The order gave fiduciary responsibility to M. Larry Lefoldt, a certified public accountant of Mississippi-based Lefoldt and Co., for the purpose of collecting, marshalling and administering all of the plan's assets.

LifeCare does not serve as Hartselle's ambulance service provider, Mayor Don Hall said.

When contacted, Banks said she had no comment on the matter.

Briana Harris can be reached at 256-340-2440 or briana.harris@decaturdaily.com.

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