Home > Local > EYE CENTERS OF TENNESSEE, DR. PATTERSON AND MAYS ORDERED TO PAY BACK NEARLY 1 MILLION TO COMPANY 401(K) PLAN

EYE CENTERS OF TENNESSEE, DR. PATTERSON AND MAYS ORDERED TO PAY BACK NEARLY 1 MILLION TO COMPANY 401(K) PLAN

The U.S. District Court for the Middle District of Tennessee, Northeastern Division, has ordered a Cumberland County based eye-care company, Eye Centers of Tennessee LLC, its owner Dr. Larry E. Patterson, and its office administrator Raymond K. Mays, to pay $971,622 in restitution to the company’s 401(k) profit-sharing plan after an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration found violations of the Employee Retirement Income Security Act. This restitution amount is in addition to the $788,850 the defendants paid to the plan in May 2016 as restitution in a related criminal matter.

The court also ordered that Eye Centers of Tennessee LLC, Dr. Patterson, and Mr. Mays be removed as fiduciaries, and permanently enjoined from serving as fiduciaries to any future employee benefit plans.

The EBSA investigation determined that Patterson and Mays – serving as the profit-sharing plan’s trustees – used the plan to pay $344,225 to Park Street Properties, owned by Mays. They also transferred $782,250 in plan assets to Maple Leaf Development LLC, which was owned by Patterson and Mays; $17,077 to Upper Cumberland Building Consultants LLC, which was owned by Mays’ brother; and $50,000 worth of plan’s assets back to Eye Centers of Tennessee.

In addition, Patterson and May used plan assets to purchase an 8,562-square-foot commercial property in 2006 for $285,000, and secured a mortgage for $325,000 for the property, which was then leased to the Pit Barbell Club – owned by Mays’ wife – for $5,000 per year. The monthly lease payments were only about one-sixth of the profit-sharing plan’s $2,618 monthly mortgage on the property.

Employees who plan for the future and contribute to a profit-sharing plan deserve to know their money is being used in a lawful manner,” said Isabel Colon, EBSA Regional Director in Atlanta. “The U.S. Department of Labor will continue to investigate any action that threatens retirement benefits employees have earned and will use any means available to ensure employers and fiduciaries who misuse funds are held accountable.”

The U.S. Department of Labor will litigate cases aggressively against fiduciaries who have committed gross violations of the pension laws,” said Stanley Keen, Regional Solicitor in Atlanta. “Our goal is not only to protect employees who have suffered losses from their pension plans and to prevent violations in the future, but to ensure that other employers who follow the law are operating on a level playing field.”

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3 Responses

  1. John Doe

    If these labor folks only had a clue about how sincere and generous these two men are, they would know that this was not done intentionally. I have personally seen them give more money to individuals in our community, that were in desperate need, that had no where else to turn. And no, it wasnt $20 or $30, it was much more than this! They would never have intentionally stolen from their employees! It was just an honest mistake that this labor department person took the opportunity to show how great they were. Its truly a sad and inaccurate representarion of these two men. Very sad.

    1. Chamomile

      No. They stole
      Money from hard working middle class to open up restaurants and use the money for unlawful things. They did it to benefit themselves and should be punished. People work hard to save money so when they are older and unable to work they can live a somewhat comfortable life style. They should both go to jail have you not watched American greed…

  2. Jane Doe

    No, that kind of crime is planned, John Doe. You don’t mistakenly misuse that kind of money. Absolutely shows the greed of these two men, who thought they could get away with this for years. Pathetic.

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