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Release Date: November 27, 2007
Release Number: 07-1823-NEW
Contact Name: Gloria Della/Richard Manning
Phone Number: 202.693.8664/202.693.4676
Newark, New Jersey – The U.S. Department of
Labor has obtained consent orders that permanently bar three trustees to
the H.E.R.E. Local 4-69 Health Fund in Secaucus, New Jersey, from
serving in a fiduciary capacity to employee benefit plans governed by
the Employee Retirement Income Security Act (ERISA).
The trustees are Theresa Alfano, Stuart Elfenbein and
David Feeback. The court orders also provide for payment of $15,000 to
the fund by Elfenbein.
As a result of an earlier criminal case, trustee
Feeback was barred from service to plans and ordered to restore
$24,002.30 in restitution to the fund. Feeback, the former president of
the union local, pleaded guilty to embezzling more than $120,000 in
assets from the union and the health fund.
“The Labor Department is committed to protecting
the employee benefits of America’s workers, and we won’t hesitate to
act when plan officials fail to properly manage their workers’
benefits responsibly,” said Jonathan Kay, director of the New York
Regional Office of the department’s Employee Benefits Security
Administration (EBSA).
The lawsuit resolved by these consent orders alleged
that the defendants violated ERISA by paying excessive fees and
commissions to the operator of a network of medical providers for
administrative services to the fund over a four-year period. The suit
also alleged that the trustees permitted the fund to reimburse Feeback
for unreasonable expenses.
The health fund provided medical, prescription drug
and dental benefits to as many as 3,059 union members throughout New
Jersey and had assets of $1,803,743 according to the latest data
available. The local 4-69 fund was absorbed by the UNITE HERE National
Health Fund.
The consent judgments, entered in federal district
court in Newark, resulted from an investigation conducted by EBSA’s
New York Regional Office. Employers and workers can reach that office at
212.607.8600 or toll-free at 1.866.444.EBSA (3272) for help with
problems relating to private sector retirement and health plans.
Chao v. Feeback
Civil Action Number 04-4696 (GEB) (JJH)
U.S. Department of Labor news releases are accessible on the
Department's Newsroom
page. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7828 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit the
Department's Compliance
Assistance page.
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