Regulators in North Carolina are alleging that the owner of a fitness center in their state terminated group health insurance for his employees without notice, resulting in nearly $30,000 in medical expenses they did not anticipate.

Frank P. D’Alonzo, 52, of Lavalette, N.J., and the owner of Impact Athletics in Cary, N.C., was arrested recently by the Ocean County Sheriff’s Office in New Jersey, according to the North Carolina Department of Insurance.

D’Alonzo is accused of violating North Carolina law, which states an employer must give employees written notice 45 days in advance of the termination of group health insurance. For his failure to do so, the gym owner faces 14 counts of failing to provide written notice to 14 employees and was placed under a $10,000 secured bond.

North Carolina regulators say in addition to failing to notify his employees, premium payments to Blue Cross Blue Shield of North Carolina were deducted from employee paychecks even after the insurer terminated coverage July 31, 2009 for non-payment.

Officials in North Carolina said Impact Athletics was closed Nov. 13, 2009.