November 1, 2011

Los Angeles - The US District Court for the Central District of California’s Southern Division has ordered two former corporate officers of an East Los Angeles community hospital to repay $600,092 based on the consent judgment and order on a lawsuit filed by the US Department of Labor, a statement released from its website said.

USA Star Healthcare Group which operates as ElaStar Community Hospital Retirement Savings Plan, as well as officers Andrea Kofl, CEO, and Richard Yardley, chief financial officer, were ordered to restore the funds, including payment of 20 percent penalty.

In addition to this, the two former officers have been removed as plan fiduciaries and are permanently barred from serving as service providers or fiduciaries to any plan covered by the Employee Retirement Income Security Act. The court also appointed Fiduciary Experts LLC of San Diego as an independent fiduciary to manage and wind down the plan, and distribute plan assets to eligible participants and beneficiaries.