Employee Benefits Security Administration

Wednesday, August 16, 2017
NEW YORK, NY – The U.S. Department of Labor has reached an agreement with the owner of a Manhattan laser surgery center to pay $5 million to its Employee Stock Ownership Plan (ESOP) to resolve violations of the Employee Retirement Income Security Act of 1974 (ERISA). The agreement was entered in a consent judgment by the U.S. District Court for the Southern District of New York. The action follows an investigation by the New York office of the Department’s
Tuesday, July 25, 2017
NEW YORK – The U.S. Department of Labor and a third-party administrator that provides employee health benefit plans with access to a network of doctors, hospitals and other medical providers have reached an agreement in which the administrator has committed to improve its communications with health plans and to return certain fees the plans paid for claims administration that the department alleged were not fully disclosed to the plans. The agreement with MagnaCare LLC resolves alleged violations of the
Thursday, July 20, 2017
Type of Action: Consent order and judgement Names of Defendants: Ditch Witch Equipment of Tennessee Inc. Aubrey Needham Allegations: Based on an investigation conducted by the Employee Benefits Security Administration, the U.S. Secretary of Labor filed a civil complaint against Ditch Witch Equipment of Tennessee Inc., an underground utility construction equipment company, and Aubrey Needham, trustee of the company’s profit-sharing plan on April 29, 2014.
Wednesday, July 12, 2017
DAYTON – A multi-agency federal and state investigation has led to the guilty plea and imprisonment of Ohio businessman William M. Apostelos, who orchestrated a Ponzi scheme that included the theft of $1.9 million from an employee benefit plan. The U.S. Department of Labor’s Employee Benefits Security Administration and Office of Inspector General participated in the investigation and prosecution led by the
Wednesday, July 12, 2017
FORT SMITH, ARKANSAS – A fraud investigation by the U.S. Department of Labor’s Employee Benefits Security Administration, the FBI, and the Department of Health and Human Services’ Office of Inspector General has led to a 12-year prison sentence for William Jackson Moates Jr., of Fort Smith, Arkansas. The investigation found that over the course of nearly five years, Moates, 50, received investment funds from at least 25 different clients, which were not invested as Moates said they would be. Moates diverted clients’ in
Thursday, June 29, 2017
WASHINGTON – The U.S. Department of Labor has published a Request for Information related to the fiduciary rule. The RFI is an opportunity for the public to provide data and information that may be used to revise the rule and associated exemptions. There is a 15-day comment period regarding extending the Jan. 1, 2018 applicability date of certain aspects, and a 30-day comment period on all other issues raised in the RFI. Both begin upon publication of the RFI in an upcoming edition of the Federal Register. Complete instructions for submitting comments a
Monday, June 19, 2017
Type of Action: Consent order and judgement Names of Defendants: Andrea Lynn McCarthy Lisa Hall Truss Systems LLC Truss Systems LLC Profit Sharing Plan Allegations: The U.S. Secretary of Labor filed a complaint, based on a Employee Benefits Security Administration investigation, alleging that Andrea McCarthy withdrew $111,624 between Jan. 28 and June 6, 2009, from Truss Systems LLC Profit Sharing Plan. McCarthy was criminally prosecuted, and pled guilty
Thursday, May 25, 2017
CHICAGO – A partnership between the U.S. Department of Labor’s Employee Benefits Security Administration and the Pension Benefit Guaranty Corporation has recovered almost $1.5 million for participants in two terminated Chicago-based pension plans. EBSA’s Chicago Regional Office and PBGC are focusing on tracking down about 1,200 participants entitled to benefits under the Hartmarx Retirement Income Plan and the United Airlines Ground Employees’ Retirement Plan. As part of bankruptcy
Monday, May 22, 2017
WASHINGTON – Fiduciary rule guidance for financial advisors, retirement plan sponsors, and individual workers and retirees has been published on the U.S. Labor Department’s website. This information comes in advance of the rule’s June 9 applicability date. Read Frequently Asked Questions. Read the Employee Benefits Security Administration’s
Thursday, April 20, 2017
Date of Action: April 11, 2017 Type of Action: Consent order and judgment Names of Defendant: Michael E. Weinhagen Weinhagen Tire Co. Inc. Weinhagen Tire Co. Inc. 401(k) Plan Findings: Michael E. Weinhagen is the sole owner and president of St. Paul, Minnesota-based Weinhagen Tire Co. and the fiduciary to the Weinhagen Tire Co. Inc. 401(k) Plan. An investigation by the U.S. Department of Labor’s Employee Benefits Security A
Monday, April 17, 2017
NEW YORK – A federal judge, presiding over a U.S. Department of Labor lawsuit, has found that First Bankers Trust Services Inc. breached its duties of prudence and loyalty to the participants of an employee stock ownership plan sponsored by a New Jersey paving and building site preparation company when it caused the plan to overpay $9.4 million for shares of the company’s stock. SJP Group Inc., the plan’s sponsor, hired First Bankers as an independent fiduciary to advise the company’s plan on whether – and at what price – to purchase shares of SJP Inc.
Tuesday, April 04, 2017
WASHINGTON – The U.S. Department of Labor has announced a 60-day extension of the applicability dates of the fiduciary rule and related exemptions, including the Best Interest Contract Exemption. The announcement follows a Feb. 3, 2017, presidential memorandum which directed the department to examine the fiduciary rule to ensure that it does not adversely affect the ability of Americans to gain access to retirement information and financial advice. Un
Wednesday, March 01, 2017
WASHINGTON – The U.S. Department of Labor has announced a proposed extension of the applicability dates of the fiduciary rule and related exemptions, including the Best Interest Contract Exemption, from April 10 to June 9, 2017. The announcement follows a presidential memorandum issued on Feb. 3, 2017, which directed the department to examine the fiduciary rule
Tuesday, January 17, 2017
Date of Action: Jan. 17, 2017 Type of Action: Employee Retirement Income Security Act lawsuit Names of Defendants: Sandor Szajkovics Passages Hospice LLC Passages Hospice LLC Dental Plan, Passages Hospice LLC Employee Benefits Plan Allegations: An investigation by the U.S. Department of Labor’s Employee Benefits Security Administration found that Szajkovics, the chief financial officer for Passages Hospice LLC, and the company violated the
Tuesday, January 10, 2017
Date of Action: Jan. 6, 2017 Type of Action: Lawsuit to recover missing retirement and health plan funds Name of Defendant(s): Central Security Communications Inc. Chief Executive Officer Robert Millikin Fiduciary Howard Klinger Allegations: The U.S. Department of Labor has filed a complaint in the U.S. District Court of Colorado against Central Security Communications Inc., CEO Robert Millikin and fiduciary Howard Klinger to restore more than $82,000 owed to the Greeley, Colorado
Thursday, January 05, 2017
MONTPELIER, Vt. – The U.S. Department of Labor is suing the fiduciaries of a Vermont employee stock ownership plan for violations of the Employee Retirement Income Security Act alleging that First Bankers Trust Services, Inc.’s 2011 purchase of the company on behalf of the ESOP from its two previous owners caused the plan to suffer sizable financial losses. Named in the suit are Sonnax Industries, Inc., a Bellows Falls supplier of automotive drivetrain products; Tommy Harmon, its president an
Wednesday, December 28, 2016
WASHINGTON – The U.S. Department of Labor’s Employee Benefits Security Administration announced today updated guidance for plan fiduciaries with respect to proxy voting. Specifically, the agency released Interpretive Bulletin 2016-01, which withdraws IB 2008-2 and reinstates earlier guidance related to such proxy voting, but with certain updates to clarify what the law requires of plan fiduciaries. Employee benefits plans often have large shares in publicly held companies, therefore the agency has long held that it is important for plan administrators to know
Friday, December 23, 2016
Date of Action: Dec. 21, 2016 Type of Action: Complaint Name(s) of Defendant(s): Larry Porter, Susan Porter, SeaBoard Management LLC, SeaBoard Management Inc., and SeaBoard Management Inc. Money Purchase Plan Allegations: Based on an investigation conducted by the U.S. Department of Labor’s Employee Benefits Security Administration, the U.S. Secretary of
Monday, December 19, 2016
WASHINGTON – Increasing access to retirement savings opportunities is the surest way to help more of America’s workers secure their financial futures. Today, the U.S. Department of Labor’s Employee Benefits Security Administration is announcing a final rule to assist large cities and other political subdivisions that establish payroll deduction individual retirement account savings programs for workers who do not have access to workplace savings arrangements. The rule amends a similar rule related to state savings initiatives pub
Monday, December 19, 2016
Date of action: Dec. 15, 2016 Type of action: Complaint Name of defendants: Urban Hotels Inc., doing business as LAX Plaza Hotel Urban Hotels 401(k) Plan and Trust Allegations: Based on an investigation conducted by the U.S. Department of Labor’s Employee Benefits Security Administration, the department filed a complaint on Dec. 15, 2016, alleging that the defendants violated the

Pages