April 7, 2020

U.S. Department of Labor Asks Federal Court to Force Lincolnshire, Illinois, Company to Supply Documents Sought in Employee Benefits Investigation

CHICAGO, IL – The U.S. Department of Labor has filed a petition asking the U.S. District Court in the Northern District of Illinois, Eastern Division, to enforce an administrative subpoena the department served to Alight Solutions LLC – based in Lincolnshire, Illinois.

April 6, 2020

Federal Court Orders Maryland Company to Restore $28,650,604 To Employer Benefit Plans After U.S. Department of Labor Investigation

BETHESDA, MD – The U.S. District Court for the District of Maryland has issued a summary judgment requiring defendants WH Administrators, its owner and chief executive officer (CEO) and chief operating officer to restore $28,650,604 to health and welfare plans sold to employers by the now defunct Bethesda, Maryland-based benefits administration company.

March 19, 2020

U.S. Department of Labor Investigation Results in U.S. District Court Sentencing Louisville Health Clinics’ Co-Founder to Prison, Ordering $258,507 Restitution Payment for Healthcare Fraud

LOUISVILLE, KY – After an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), the U.S. District Court for the Western District of Kentucky has sentenced Eduardo Chinea Martinez – co-founder of several Louisville, Kentucky, medical clinics – to 42 months in prison and three years of supervised release. The court also ordered him to pay $258,507 in restitution for defrauding healthcare benefit programs. He made full restitution on March 5, 2020, the date of sentencing.

March 19, 2020

U.S. Department of Labor Obtains Default Judgment to Restore $103,098 To Virginia Engineering Company Employees’ Retirement Plan

ANNANDALE, VA – The U.S. District Court for the Eastern District of Virginia has issued a default judgment requiring defendants JWK Corp., its chief executive officer and the director of operations to restore $103,098 to the 401(k) defined contribution plan of the Annandale, Virginia-based engineering services company.

March 18, 2020

Tennessee Insurance Agency to Pay $3,818,181 in Restitution to Employee Stock Ownership Plan After U.S. Department of Labor Investigation

NASHVILLE, TN The U.S. District Court for the Middle District of Tennessee, Nashville Division, has approved a settlement between the U.S. Department of Labor, Zander Group Holdings Inc., Stephen Thompson and Jeffrey Zander involving the company’s Employee Stock Ownership Plan (ESOP).

March 5, 2020

Southern California Sleep Study Clinic Owner Sentenced After U.S. Department of Labor Uncovers Healthcare Fraud

LOS ANGELES, CA – After an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) and the Office of Inspector General, a federal court has sentenced Anna Vishnevsky to 37 months in prison, and ordered her to make $2,747,071 in restitution for defrauding the healthcare benefit plans of UPS Inc. and Costco Wholesale Corp. 

February 27, 2020

Court Sentences Former New Jersey Pension Fund Trustee for Employee Benefits Plan Embezzlement After U.S. Labor Department Investigation

NEW YORK, NY – The U.S. District Court for the District of New Jersey has sentenced Howard Preschel of Teaneck, New Jersey, to 30 months in prison, followed by three years of supervised release and ordered him to pay $462,049 in restitution for embezzling funds from an employee pension benefits plan sponsored by CMG Vending Inc. in Union City, New Jersey. The court also fined Preschel $10,000.

February 5, 2020

Federal Court Sentences Southern California Acupuncturist After U.S. Department of Labor Finds Healthcare Fraud

LOS ANGELES, CA – After an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), the U.S. District Court for the Central District of California has sentenced Kimi Gudmundsen – owner of Healthy Life Acupuncture Center in Los Angeles and Riverside, California – to 30 months in prison and ordered her to pay $2,683,903 in restitution for defrauding Amtrak’s healthcare plan. 

February 3, 2020

Federal Court Sentences Former New Jersey Insurance Broker after Guilty Plea for Healthcare Fraud Following U.S. Labor Department Investigation

NEW YORK, NY – The U.S. District Court for the District of New Jersey has sentenced Lawrence Ackerman – a former Bergen County, New Jersey, insurance broker – to six months of imprisonment and six months of home incarceration, and ordered him to pay $1,000,000 in restitution for defrauding the United Auto Workers (UAW) Local 2326 Health and Welfare Fund.

December 23, 2019

U.S. Department of Labor Investigation Results in Federal Court Sentencing Operators of Sleep Study Centers in California for Healthcare Plan Fraud

LOS ANGELES, CA – After an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), the U.S. District Court for the Central District of California has sentenced Nick Nikbakht – an operator of sleep study facilities in Sherman Oaks and San Pedro, California – to 27 months in prison for defrauding healthcare plans. The court also ordered that Nikbakht pay $2,970,817 in restitution.

November 21, 2019

U.S. Department of Labor Restores Over $2.5 Billion To Employee Benefit Plans and Participants

WASHINGTON, DCThe U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) today released its program results for Fiscal Year 2019. EBSA’s enforcement and benefit advisor programs recovered over $2.5 billion in payments to plans, participants and beneficiaries.

November 20, 2019

U.S. Department of Labor Investigation Results in Federal Court Sentencing Long Beach Spa Owner for Maritime Union Healthcare Plan Fraud

LOS ANGELES, CA – After an investigation by the U.S. Department of Labor's Employee Benefits Security Administration (EBSA), the U.S. District Court for the Central District of California has sentenced Erica Carey – former owner of Long Beach Medi-Spa in Long Beach, California – to three years' probation and ordered her to pay $366,740 in restitution for defrauding a maritime union welfare plan.

November 20, 2019

U.S. Department of Labor Obtains Consent Order and Judgment To Restore Assets to Participants in Ohio Employee Benefit Plans

DAYTON, OH – After an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), the U.S. District Court for the Southern District of Ohio issued a consent order and judgment requiring the fiduciaries of Day-Mont Behavioral Health Care Inc. to restore $141,666 to the defunct Dayton, Ohio-based company’s employee benefit health and annuity plans. The mental health services provider ceased operations in 2018.

November 18, 2019

U.S. Department of Labor Releases Advance Copies Of Form 5500 Annual Return/Report for 2019

WASHINGTON, DC – The U.S. Department of Labor's Employee Benefits Security Administration (EBSA), the IRS and the Pension Benefit Guaranty Corporation (PBGC) today released advance informational copies of the 2019 Form 5500 Annual Return/Report and related instructions.

October 22, 2019

U.S. Department of Labor Proposes New Electronic Disclosure Rule

WASHINGTON, DC – Consistent with President Donald J. Trump’s Executive Order 13847, Strengthening Retirement Security in America, the U.S. Department of Labor today announced a proposed rule to allow online retirement plan disclosures to reduce printing and mail expenses for job creators and make disclosures more readily accessible and useful for America’s workers.

October 1, 2019

U.S. Department of Labor Investigation Results in Tennessee Transportation Provider Paying $454,545 in Restitution to Employee Stock Ownership Plan

SHELBYVILLE, TN – The U.S. District Court for the Eastern District of Tennessee has approved a settlement between the U.S. Department of Labor and Big G Express Inc., Stephen Thompson, and David Nolan involving the company's Employee Stock Ownership Plan (ESOP).

In accordance with the consent judgment, Big G Express – a Shelbyville, Tennessee-based trucking company – paid $454,545 in restitution to the plan. The Department also assessed a civil penalty of $45,454 against the defendants.  

September 6, 2019

U.S. Department of Labor Announces Actions to Assist Americans Impacted By Hurricane Dorian

WASHINGTON, DC – The U.S. Department of Labor today announced actions it is taking to assist Americans in states affected by Hurricane Dorian.

"The U.S. Department of Labor is actively engaged in Administration-wide efforts to help those impacted by Hurricane Dorian," said Acting U.S. Secretary of Labor Patrick Pizzella. "As Americans from across the country rally to help each other, the Department of Labor is committed to supporting recovery efforts."

U.S. Department of Labor actions taken regarding Hurricane Dorian include the following:

August 26, 2019

U.S. Department of Labor Investigation Results in North Carolina Business Owners Paying $21,404 in Employee Contributions, Unpaid Medical Claims

CHARLOTTE, NC – The U.S. District Court for the Western District of North Carolina, Charlotte Division, has entered a consent judgment and order between the U.S. Department of Labor and Steven Matthew Good, William H. Winn Jr., SmartCore LLC, and the SmartCore LLC Group Health Benefit Plan requiring them to pay $21,404 to the plan participants to cover unpaid medical claims or to reimburse their contributions to the plan.

August 16, 2019

Court Sentences Omaha, Nebraska, Resident to Jail, Orders $276,878 In Restitution After U.S. Department of Labor Finds Benefits Fraud

OMAHA, NE – After a joint investigation by the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), the Social Security Administration’s Office of the Inspector General, and the U.S. Department of Health and Human Services’ Office of the Inspector General, the U.S. District Court of Nebraska has sentenced Craig A.

August 15, 2019

Federal Judge Orders Virginia Company’s Former CEO and Institutional Fiduciary to Restore $6,502,500 to Employee Stock Ownership Plan

FOREST, VA – The U.S. District Court for the Western District of Virginia has ordered the former CEO of a Virginia packaging equipment company and the bank that acted as a transactional fiduciary of the company’s Employee Stock Ownership Plan (ESOP) to restore $6,502,500 to the plan.