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Release Date: 04/06/2005
Release Number: 05-588-NEW
Contact Name: Gloria Della
Phone Number: 202.693.8664
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New York, New York - The former president of
Vanguard Asset Group Inc., Lake Success, New York, was indicted by a
federal grand jury in New York for embezzlement of health care premiums
and for defrauding small business clients to benefit himself. |
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“Theft of employee benefit assets is unacceptable,”
said Ann L. Combs, Assistant Secretary of the Employee Benefits Security
Administration (EBSA). “The department will not hesitate to pursue those
who commit these crimes and recover money stolen from hard-working
Americans.” |
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Samuels was indicted for embezzlement of payments
intended to provide health care coverage and for devising a scheme to
defraud members of the Wedding & Event Videographers Association (WEVA)
and the American Financial Management Association Group (AFMA). AFMA was a
corporation set up by Samuels to collect premiums from individuals that
were not WEVA members. |
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Samuels allegedly carried out the fraud by falsely
representing to WEVA members that Vanguard carried stop-loss insurance
coverage to pay claims in excess of the assets that Vanguard had and by
embezzling for his personal use payments intended to provide health
coverage. Samuels, who was in charge of Vanguard’s day-to-day operations
including its financial affairs, allegedly failed to pay numerous bills
submitted to Vanguard by health care providers for services provided to
WEVA and AFMA members. |
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Vanguard marketed the health care benefit program in
numerous states including New York, New Jersey, Florida, Connecticut and
Massachusetts. Vanguard is not related to The Vanguard Group Inc. of
Valley Forge, Pennsylvania. |
The
New York regional office of EBSA and the department’s Office of
Inspector General in New York conducted the joint investigation in this
case. The U.S. Attorney’s Office for the Eastern District of New York
prosecuted the case. |
In
previous legal actions, the Labor Department obtained a judgment in
January 2001 permanently barring Samuels from involvement with ERISA plans
and requiring restitution to the International Workers Guild (IWG) health
plan. In a separate criminal case, Samuels was sentenced to six months of
probation for his role in committing health care fraud in connection with
the IWG health plan. |
Tips
for small employers on purchasing health benefits may be found at EBSA’s
Web site at http://www.dol.gov/ebsa/newsroom/fshlthinstips.html. Employers
and workers can reach the New York regional office at 212.607.8600 or EBSA
toll-free at 1.866.444.EBSA (3272) for help with problems relating to
private-sector retirement and health plans. |
(U.S.
v. Samuels)
Criminal No. CR05-0230 |
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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 202.693.7765 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. |
