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Release Date: 05/21/2003
Release Number: BOS 2003-097
Contact Name: Gloria Della
Phone Number: 202.693.8664
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New York, New York - The U.S. Department of
Labor obtained a final consent judgment on May 16, 2003, holding that the
health plan administrators of U.S. Alliance, Inc. and International
Benefits Association, Inc. of Washington, D.C. are liable to pay up to
$2.8 million from future income for unpaid medical claims owed to at least
1,500 plan participants. |
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Under the consent judgment, defendants Mari Elena
Marks, Timothy Marks, and Michele Jenkinson as well as Alliance
Administrators, Inc., Nexus Administration Systems, Inc. and People Care
Management, Inc. are barred from operating, serving or marketing any plans
governed by federal employee benefit plan law. |
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In an earlier court judgment, the department resolved
allegations against Walter Nieves, Michael Nieves, Jesus Nieves, U.S.
Alliance Inc. and International Benefits Association, Inc., holding them
liable for restitution of $2.8 million to pay medical claims of plan
participants. The restitution will be paid from the sale of real estate
and future income of the defendants. |
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The judgments followed a July 12, 2001 temporary
restraining order granted by the court that froze the assets of all the
defendants, removed them as health plan officials, appointed David
Silverman as the independent fiduciary responsible for managing the plan,
and barred them from any involvement with plans governed by the Employee
Retirement Income Security Act (ERISA). |
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The defendants sold health coverage to employers and
employees in connection with several membership associations operated
mainly on the East Coast. Employers paid contributions to purchase
benefits provided by the various association plans. Alliance
Administrators and its related companies were third party administrators
of the health plans. Until October 1999, the health plans’ coverage was
sold under such names as U.S. Alliance Valucare, Mannacare, U.S. Alliance
Plan, and U.S. Alliance Managed Care Partners. |
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The department sued all the defendants on July 10, 2001
in connection with commissions, fees and personal expenses diverted from
the payment of health benefits. The defendants also allegedly caused the
plan to become insolvent, failed to obtain a fidelity bond for the plan
and did not filed required annual reports with the federal government. |
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Francis C. Clisham, director of the department’s New
York Regional Office of the Employee Benefits Security Administration,
said, “Plan officials have a duty to manage and protect employee benefit
plans and their assets. Our action today is designed to restore assets to
pay the unpaid medical claims of workers and their families.” |
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This case was investigated by EBSA’s New York
Regional Office. Employers and workers can reach the office at 212.607.8600
or toll free at 1.866.444.3272 for help with any problems relating to
private-sector pension and health plans. |
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(Chao v. Marks)
Civil Action No. CV-014569 |
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U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7755. |
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