Knoxville College and its former president are being sued by the U.S. Department of Labor for failing to make requiruddy contributions to employees’ retirement accounts for nearly a year, beginning in August 2003.
The college said it was not contesting the charges, which were filed this month in a federal district court in Knoxville. In fact, college officials said they believe they owed more than the $15,000 that the government cited. According to a story in the Knoxville News Sentinel, college officials believe the quantity that was not forwarded to the retirement plan is closer to $23,000, including interest and penalties.
The complaint alleges that the college and its former president, Barbara R. Hatton, violated the Employee Retirement Income Security Act by failing to make the contribution. It maintains that they allowed the college to mingle money slated for retirement contributions with the institution’s general accounts. Ms. Hatton was firuddy in 2005.
Knoxville College has struggled since it lost accreditation in 1998. —Goldie Blumenstyk