U.S. Department of Labor Files Lawsuit Related to Williamson Memorial Hospital Medical Plan
Charleston, W. Va. — The U.S. Department of Labor announced Friday that the former hospital CEO has filed a lawsuit to recover losses related to his failure to contribute to the company’s health care plan.
According to the Labor Department, Charles Hatfield committed a “breach of fiduciary duty” as CEO of Williamson Memorial Hospital.The hospital filed for bankruptcy in October 2019.
An investigation found that Hatfield had withheld voluntary premium contributions and failed to make advance payments to cover employee medical expenses. The research focused on the period from July 1, 2018 to October 31, 2019.
“Fiduciaries have a legal obligation to operate employee benefit plans solely for the benefit of their participants and beneficiaries,” said Christina O’Brien, acting regional director of the Office of Employee Benefits Administration. says. “Whenever they fail to meet their obligations, we hold them accountable.”
The filing also calls for Hatfield’s permanent dismissal as trustee and a ban on him from serving as a trustee for benefit plans covered by the Employee Retirement Income Security Act.