October 26, 2020

Federal Court Sentences Georgia Woman to Prison, Orders $1,034,793 In Restitution after U.S. Department of Labor Fraud Investigation

ATLANTA, GA – After an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), the U.S. District Court for the Northern District of Georgia has sentenced Carrie N. Harris – former Chief Financial Officer, Treasurer and Plan Administrator for the Southern Pan Services Employee Stock Ownership Plan (ESOP) – after she made more than $1 million in fraudulent withdrawals from the company’s bank accounts to pay charges to Harris’ and her husband’s personal and business credit cards.

October 23, 2020

U.S. Department of Labor Updates Tool to Determine If Health Plans or Insurers Comply with Mental Health Parity and Addiction Equity Act

WASHINGTON, DC – The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) has released an updated tool to help employers comply with the Mental Health Parity and Addiction Equity Act (MHPAEA) and related requirements under the Employee Retirement Income Security Act of 1974 (ERISA).

October 22, 2020

Federal Court Sentences Kentucky Woman to Prison, Orders $838,804 In Restitution After U.S. Department of Labor Finds Benefit Plan 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 Candi Fluhr, a former controller in Bullitt County, Kentucky, to 94 months in prison, 36 months of supervised release, and ordered her to pay $838,804 in restitution.

October 19, 2020

CEO and CFO of Kentucky Medical Companies Sentenced to Prison For Defrauding the U.S.; Ordered to Pay More than $1.5M in Restitution

LEXINGTON, KY – After a joint investigation by the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) and the IRS, U.S. District Court Judge Karen K. Caldwell sentenced two Kentucky healthcare companies’ executives to prison and ordered them to pay $1,595,725 in restitution.

October 16, 2020

Court Orders New York Union Trustees to Pay $570,000, Resolve ERISA Violations, After U.S. Department Labor Investigation and Litigation

NEW YORK, NY – The U.S. District Court for the Eastern District of New York has ordered the trustees of four benefit plans for United Derrickmen & Riggers Association, Local Union 197, in Long Island City, New York, to restore $475,000 to the plans, pay a $95,000 penalty to the U.S. Department of Labor and take other corrective actions to resolve violations of the Employee Retirement Income Security Act (ERISA).

October 15, 2020

Federal Court Orders Kentucky Bankers Association to Pay $1,561,818 In Losses to Benefits Plan After U.S. Department of Labor Finds Violations

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 entered a consent order and judgment against the Kentucky Bankers Association (KBA), Participating Employer Committee (PEC), Association Healthcare Consortium Inc., and the current and former trustees of the Kentucky Bankers Association Health and Welfare Benefit Program and the KBA Benefits Trust holding them jointly and severally liable to pay $1,561,818 in losses to the Trust.

October 5, 2020

U.S. Department of Labor Obtains Consent Order and Judgment To Restore $6,545,454 to Union Short Term Disability Fund

CLEVELAND, OH – The U.S. Department of Labor has obtained a consent order and judgment requiring the International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART) Union and the current trustees of the SMART Group Voluntary Short Term Disability Plan (SMART VSTD Plan) to restore $6,545,454 to the Plan.

October 1, 2020

Federal Court Sentences Kentucky Business Owner for Improper Use of Benefit Plans’ Contributions After U.S. Department Labor Investigation

LEXINGTON, KY – After an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), the U.S. District Court for the Eastern District of Kentucky has sentenced Aaron Jamison – founder, owner and president of Micah Group LLC and Micah Group Environmental Contractors Inc.

August 31, 2020

U.S. Department of Labor Proposes Rule on Employee Benefit Plan Proxy Voting and Exercises of Other Shareholder Rights

WASHINGTON, DC – The U.S. Department of Labor today made available a proposed rule that would address the application of the prudence and exclusive purpose duties under the Employee Retirement Income Security Act (ERISA) with respect to proxy voting and exercises of other shareholder rights. The proposed rule amends the Department’s longstanding “Investment duties” regulation at 29 CFR 2550.404a-1.

August 25, 2020

U.S. Department of Labor Obtains Default Judgment To Restore $65,842 to Defunct Ohio Company Retirement Plan

COLUMBUS, OH – The U.S. Department of Labor has obtained a default judgment requiring Robert Walton, Jr. – CEO of Hadsell Chemical Processing – to restore $65,842 to the Hadsell Chemical Processing Simple IRA Plan after the Department’s Employee Benefits Security Administration (EBSA) found that Walton, as plan fiduciary, violated the Employee Retirement Income Security Act (ERISA).

August 25, 2020

U.S. Department of Labor Obtains Consent Judgment OrderingConnecticut Companies to Restore $17,352 to Employees’ 401(k) Plan

HARTFORD, CT – The U.S. District Court for the District of Connecticut has approved a consent order and judgment requiring fiduciaries Executive Printing of Darien LLC, Chapin Packaging LLC and John Trask Pfeifle to restore $17,352.83 to the Darien, Connecticut, companies’ 401(k) retirement benefits plan.

August 25, 2020

Federal Court Sentences Southern California Chiropractor After U.S. Department of Labor Uncovers Healthcare Fraud

LOS ANGELES, CA – The U.S. District Court for the Central District of California has sentenced Mahyar David Yadidi – a San Pedro, California, chiropractor – to prison and ordered him to make restitution for defrauding the International Longshore and Warehouse Union-Pacific Maritime Association (ILWU-PMA) Welfare Plan. The court’s action follows an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) and Office of Inspector General (OIG).

August 20, 2020

U.S. Department of Labor Proposes Registration Requirements For Pooled Plan Providers

WASHINGTON, DC The U.S. Department of Labor today announced a notice of proposed rulemaking on pooled plan provider registration requirements. The proposal seeks to implement the registration requirements for “pooled plan providers” pursuant to the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019.

August 18, 2020

U.S. Department of Labor Rule Will Improve Workers’ Ability to Measure Lifetime Benefits Payments to Determine Readiness to Retire

WASHINGTON, DC – The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) today announced an interim final rule that will help workers determine their ability to retire by allowing them to estimate how their current savings in a 401(k)-type plan might translate into lifetime monthly payments.

The rule implements section 203 of the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019.

August 17, 2020

Federal Court Orders Nevada Leak Detection Company to Pay Retirement Plan Participants $51,434 for Unpaid Contribution, Associated Lost Interest

SAN FRANCISCO, CA – The U.S. District Court of Nevada has ordered Sin City Investment Group Inc. – operating as American Leak Detection of Southern Nevada – and its president Leland Keith Ozawa to pay $51,434 for missing employee contributions and associated lost interest owed to non-fiduciary participants of the American Leak Detection SIMPLE IRA Plan.

August 13, 2020

Court Sentences Former Union Health Plan Trustee and Vice President To 18 Months in Prison After U.S. Department of Labor Investigations

NEW YORK, NY – The U.S. District Court for the Southern District of New York has sentenced John Ulrich – former vice president of the International Brotherhood of Teamsters, Local 812 and former trustee of the Local 812 Health Fund – to 18 months in jail for soliciting bribe payments in violation of the Employee Retirement Income Security Act (ERISA).

July 30, 2020

U.S. Department of Labor Obtains Default Judgment Requiring Defunct Virginia Company to Restore $21,880 to Employee 401(k) and Benefit Plans

MCLEAN, VA – The U.S. District Court for the Eastern District of Virginia has approved a default judgment that requires Mahan Consulting Group LLC and its president and owner Shaun Marzett to restore $21,880 to the 401(k), health and welfare benefit plans of the now defunct consulting company in McLean, Virginia.

July 28, 2020

Federal Court Orders Millions Restored to Connecticut Health and Retirement Plans After U.S. Department of Labor Investigation, Litigation

BRIDGEPORT, CT – The U.S. District Court for the District of Connecticut has approved a consent judgment and order requiring Bridgeport Health Care Center Inc. (BHCC) – the operating entity of two former Bridgeport nursing homes – and former officer Chaim Stern, to pay a total of $3,366,957 to BHCC’s health and retirement plans to resolve violations of the Employee Retirement Income Security Act (ERISA).

July 22, 2020

U.S. Department of Labor Obtains Injunction Enjoining Fleet Owners Insurance Fund from Paying Attorney’s Fees in Defense of ERISA Violations

CLEVELAND, OH – The U.S. District Court for the Northern District of Ohio has issued a preliminary injunction enjoining the Fleet Owners Insurance Fund from paying or advancing attorneys’ fees to any of the defendants in a U.S. Department of Labor Employee Benefits Security Administration (EBSA) enforcement case.

July 14, 2020

U.S. Department of Labor Announces Appointments to Employee Retirement Income Security Act Advisory Council

WASHINGTON, DC – The U.S. Department of Labor today announced the appointment of five members and leadership for the 2020 Advisory Council on Employee Welfare and Pension Benefit Plans, also known as the ERISA Advisory Council. The 15-member council provides advice on policies and regulations affecting employee benefit plans governed by the Employee Retirement Income Security Act of 1974 (ERISA).