Annapolis Accounting Firm Held in Civil Contempt
A federal court has fined Fidelis Tax and Accounting for failing to comply with Department of Labor subpoenas.
Updated on Oct. 10, 2026 in Financial Crime
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A Maryland federal court held Annapolis-based Fidelis Tax and Accounting in civil contempt after the firm ignored subpoenas regarding its 401(k) management. The firm must now pay a $200 daily fine for failing to turn over records required by the Department of Labor.
Why it matters
The court imposed these coercive financial sanctions after the firm failed to respond to multiple requests and a formal show-cause order concerning an ERISA investigation. This measure aims to compel the production of records that the firm has withheld for months.
A Maryland federal court has ordered the firm to supply all requested documents within seven days of the October 7 ruling. The company remains without legal representation as it continues to ignore court orders.
The players
Fidelis Tax and Accounting
This is an Annapolis-based accounting firm currently under investigation for its management of 401(k) plans.
Adam Abelson
He is the judge who ordered the firm to pay daily fines for failing to comply with federal labor subpoenas.
Department of Labor
This federal executive department is responsible for enforcing laws involving 401(k) plans and ERISA regulations.
The details
Judge Adam Abelson issued the ruling after Fidelis Tax and Accounting ceased all communication with federal investigators following a subpoena extension. The firm did not file any documents in the case and failed to justify its noncompliance in response to the court-issued show-cause order.
Timeline
December 2025: The Department of Labor issued two subpoenas to the firm.
January 2026: The Department of Labor filed a petition to enforce the subpoenas.
April 22, 2026: The court-ordered deadline for the firm to supply records passed without compliance.
October 7, 2026: The court officially held the firm in civil contempt.
Legal Context
This enforcement action follows the oversight procedures established under the Employee Retirement Income Security Act of 1974 to protect retirement assets. Financial firms are routinely compelled by federal courts to produce records when they fail to demonstrate compliance with these labor statutes.
This ruling highlights the aggressive measures courts take to ensure the transparency of financial firms managing personal retirement accounts. Residents who utilize local accounting services should verify that their providers remain in good standing with federal oversight agencies.
The takeaway
Entities that ignore federal subpoenas face escalating financial penalties and potential legal jeopardy. Maintaining compliance with regulatory record-keeping requirements is essential for businesses to avoid civil contempt rulings.
What happens next
The firm is required to submit the requested documentation to the court by October 14, 2026, or face continued daily financial penalties.
Further reading
For more information on legal proceedings involving local businesses, visit the Financial Crime section.
Source note: This article includes information reported by Maryland Daily Record.
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