Employee Benefits Security Administration

Friday, February 09, 2018
HARTFORD, CT – After an investigation by the Department of Labor’s Employee Benefits Security Administration (EBSA) and Office of Inspector General (OIG), Yolanda Silverio, a former eligibility coordinator for a Connecticut company that administers trust funds for public and private sector health benefit plans, has been sentenced by the U.S. District Court for the District of Connecticut to 10 months of imprisonment followed by three years of supervised release. The court has also ordered Silverio to pay $35,461.34 in restitution, perform 150 hours of community service,
Friday, February 09, 2018
CHICAGO, IL – The U.S. Department of Labor has entered into a settlement agreement with U.S. Fiduciary Services and three of its subsidiaries that provides for payment of more than $7 million to 42 retirement plans that suffered losses as a result of investments in fictitious loans made by Florida-based First Farmers Financial LLC (FFF). The agreement and anticipated future payments from a pending Receivership Estate case involving FFF are expected to compensate the retirement plans fully for approxi
Friday, February 02, 2018
PROVIDENCE, RI – The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) participated in a multi-agency investigation related to pension fund theft that has resulted in a criminal conviction. John M. Hairabet, Jr., a former business associate and office manager of New England Anesthesiologists Inc. and president of Anesthesia Management Consultants LLC – both based in Warwick, Rhode Island – has been sentenced to 37 months in federal prison for embezzling $120,313 in employee elective deferrals that were to be deposited into an employee 401(k
Thursday, January 11, 2018
CHICAGO, IL – Following a U.S. Department of Labor investigation, the U.S. District Court for the Northern District of Illinois entered a judgment requiring Michael Lewis, former president of Acme Orthotics and Prosthetic Laboratories Inc., to restore $128,535.75 in losses owed to the company’s Profit Sharing 401(k) Plan and Trust (“Plan”). As fiduciaries, Lewis and co-defendant Monica Fox failed to remit $58,531.72 in employee salary deferral contributions and loan repayment contributions, including lost opportunity costs, to the plan from July 2010 throu
Friday, January 05, 2018
WASHINGTON, DC – The U.S. Department of Labor announced today its decision for April 1, 2018, as the applicability date for employee benefit plans to comply with a final rule under the Employee Retirement Income Security Act (ERISA) that will give America’s workers new procedural protections when dealing with plan fiduciaries and insurance providers who deny their claims for disability benefits. The new rule ensures, for example, that disability claimants receive a clear explanation of why their claim was denied as well as their rights to appeal a denial
Thursday, January 04, 2018
WASHINGTON, DC – The U.S. Department of Labor today announced a Notice of Proposed Rulemaking to expand the opportunity to offer employment-based health insurance to small businesses through Small Business Health Plans, also known as Association Health Plans. Up to 11 million Americans working for small businesses/sole proprietors and their families lack employer-sponsored insurance. These 11 million Americans could find coverage under this proposal. Many small employers struggle to offer insurance because it is currently too expensive and cumbersome. These empl
Thursday, December 21, 2017
CONCORD, NH – A New Hampshire man has pleaded guilty in federal court to one count of obstruction of justice in connection with a U.S. Department of Labor wage and hour investigation and litigation. It is believed to be the first federal criminal prosecution arising from a Department wage and hour investigation in New Hampshire. Kevin Corriveau, owner and operator of Kevin Corriveau Painting Inc. of Nashua, was the subject of an investigation by the Department’s Wage and Hour Division and a subsequent civil
Tuesday, December 12, 2017
BIRMINGHAM, AL – The U.S. District Court for the Northern District of Alabama, Southern Division, has sentenced a former fund manager in Birmingham to make restitution in the amount of $45,896 and serve five years of probation, including six months of home confinement, for violating the Employee Retirement Income Security Act. In addition, she has been barred from acting as a fiduciary for five years. The action follows a U.S. Department of Labor Employee Benefits Security Administration investigat
Monday, November 27, 2017
WASHINGTON, DC – The U.S. Department of Labor has announced an 18-month extension from Jan. 1, 2018, to July 1, 2019, of the special Transition Period for the Fiduciary Rule’s Best Interest Contract Exemption and the Principal Transactions Exemption, and of the applicability of certain amendments to Prohibited Transaction Exemption 84-24 (PTEs). This follows public comment on a proposed extension that was published in August. The extension gives the Department the time necessary to consider public comments submitted pursuant to the Department’s July Request
Friday, November 24, 2017
WASHINGTON, DC – The U.S. Department of Labor today announced a ninety (90) day delay – through April 1, 2018 – of the applicability date for ERISA plans to comply with a final rule amending the claims procedure requirements applicable to disability benefits. The three month delay of the applicability date announced today is intended to give interested stakeholders the opportunity to submit, and for the Department to consider, data and information related to concerns by some insurance industry and employer groups, and some members of Congress, that the
Tuesday, November 21, 2017
WASHINGTON, DC – The U.S. Department of Labor announced employee benefit plan compliance guidance and relief for victims of Hurricane Maria and the October 2017 California Wildfires. The Department understands that plan fiduciaries, employers, labor organizations, service providers, and participants and beneficiaries may encounter issues complying with the Employee Retirement Income Security Act (ERISA) over the next few months as the implications of Hurricane Maria and the California Wildfires unfold. The guidance provided in this statement generally
Monday, November 20, 2017
WASHINGTON, DC – The U.S. Department of Labor’s Employee Benefits Security Administration, the IRS, and the Pension Benefit Guaranty Corporation (PBGC) today released advance informational copies of the 2017 Form 5500 annual return/report and related instructions. The “Changes to Note” section of the 2017 instructions highlight important modifications to the Form 5500 and Form 5500-SF and their schedules and instructions.  Mod
Thursday, November 16, 2017
NEW YORK, NY – The U.S. Department of Labor has reached agreements to resolve three lawsuits with First Bankers Trust Services Inc. (FBTS). The lawsuits alleged that FBTS violated the Employee Retirement Income Security Act (ERISA) when it approved stock purchases by three Employee Stock Ownership Plans (ESOPs). As part of the agreements, FBTS will pay $15.75 million to the plans and reform its procedures for handling ESOP transactions. The Department filed suit against FBTS in 2012 in the U.S. District Courts for the Southern District of New York and the Distri
Wednesday, November 08, 2017
CHICAGO, IL – The U.S. Department of Labor obtained a temporary restraining order in the U.S. District Court for the Northern District of Illinois against AEU Holdings LLC and AEU Benefits LLC (collectively “AEU”), and Black Wolf Consulting Inc. The defendants failed to pay more than $26 million for participants’ health benefit claims in the AEU Holdings LLC Employee Benefit Plan. For the first time, the Department has exercised its authority under Section 521 of the Employee Retirement Income Security Act (ERISA) to issue cease and desist orders to prevent further
Friday, November 03, 2017
NEWARK, NJ – After a seven-day trial, a jury sitting in U.S. District Court in Newark found Paul Moe Sr., general foreman for a Port Elizabeth terminal operator, guilty of one count of conspiracy to commit wire fraud and 13 substantive counts of wire fraud. The jury found that – from September 2015 through March 2017 – the Atlantic Highlands, New Jersey, resident fraudulently colluded with others to report that he worked 8 hours a day, 40 hours a week – while he only appeared at his job site for as little as 8 hours during certain weeks – and collected a
Monday, October 30, 2017
PORT ST. LUCIE, FL – The U.S. District Court for the Southern District of Florida has sentenced a Port St. Lucie resident to serve 161 months of imprisonment, followed by an additional three years of supervised release, and to make $1,665,348 in restitution for violating federal criminal statutes pertaining to plans covered by the Employee Retirement Income Security Act. Miguel de Paula Arias previously pleaded guilty to three counts of a 28-count superseding indictment. The counts charged Arias wi
Friday, September 15, 2017
WASHINGTON, DC – The U.S. Department of Labor announced employee benefit plan compliance guidance and relief for victims of Hurricane Irma that parallels that which it already provided to victims of Hurricane Harvey regarding verification procedures for plan loans and distributions, participant contributions and loan payments, blackout notices, and group health plan compliance. The Hurricane Harvey relief was announced on Aug. 30, 2017, in EBSA Release Number 17-1216-NAT. The Department unders
Thursday, August 31, 2017
WASHINGTON, DC – The U.S. Department of Labor has announced a proposed 18-month extension from January 1, 2018, to July 1, 2019, of the special transition period for the Fiduciary Rule’s Best Interest Contract (BIC) Exemption and the Principal Transactions Exemption, and certain amendments to Prohibited Transaction Exemption 84-24. The proposal follows a Request for Information publis
Wednesday, August 30, 2017
WASHINGTON, DC – The U.S. Department of Labor has announced an update on employee benefit plan compliance for those impacted by Hurricane Harvey. “Our deepest and most immediate concern is for those who are in harm’s way, and for the first responders who will work tirelessly to help those affected,” said U.S. Secretary of Labor Alexander Acosta. “We also realize that employers and employees impacted by Hurricane Harvey will need assistance in dealing with employee benefits issues arising from disruptions in banking and payroll processing.” Th
Friday, August 18, 2017
WASHINGTON, DC – The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) is soliciting nominations to fill five, three-year vacancies on the Advisory Council on Employee Welfare and Pension Benefit Plans, also known as the ERISA Advisory Council. The deadline to submit nominations is Aug. 31. The 15-member council provides advice on policies and regulations affecting employee benefit plans governed by the 

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