Federal court orders restitution for former employees of Merrillville businessman
BY Teresa Auch Schultz firstname.lastname@example.org August 13, 2012 1:02PM
Updated: August 14, 2012 12:04AM
A former Merrillville businessman accused of taking money from his employees’ retirement accounts has paid back most of the money and has agreed to pay the rest of it back soon, according to a court filing.
The U.S. Department of Labor sued Ben Richmond and his company, Family Mobile Medical Services, in March 2011, claiming that Richmond took $8,966 in 2008 from the company’s retirement plan to cover operating costs for the business.
In an answer to the lawsuit, Richmond denied its claims. However, according to a consent decree order filed Friday by U.S. District Judge Jon DeGuilio, Richmond has paid back $4,037 to the employees.
The order says he is still liable for a total of $906 to seven of his former employees and that the money is due within a week of the when the order was granted.
The order also calls for each side to pay their own legal fees.
Richmond started Family Mobile, 1370 E. 86th Place, in 1994. At the time of the lawsuit, a call to the business said that another company had taken over its clients, and the Indiana Secretary of State’s website says the business has been dissolved.
Richmond, a Gary native and Lew Wallace High School graduate, also has taken part in several other local businesses, including as a partner with Showtime Sports and Entertainment, which used to own the Gary Steelheads basketball team.