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News Release

Austell GA Woman Indicted on Health Benefit Fraud

Archived News Release — Caution: Information may be out of date.

Contact Name: Gloria Della
Phone Number: 202.219.8921

A former employee of the Mableton, Ga. Specialties & Paper Products Local Union 527 health and welfare fund has been indicted by a Georgia State grand jury for filing $17,054 in false health benefit claims.

Cheryl Larraine Huff of Austell, Ga. allegedly used her position with the union health and welfare fund to steal health benefit money over the period March 1991 to June 1992. At the time of the improper action, Huff was the plan administrator responsible for processing health benefit claims of participating union members. She allegedly stole the funds by writing benefit checks to herself and manipulating the fund's computerized accounting system to hide the transactions.

Huff subsequently resigned from her position with the union's fund before the scheme was detected. She has not repaid any of the money stolen from the fund. If convicted, she faces 10 years in prison and $100,000 in fines.

The money was stolen from accounts containing employee benefit plan funds, which are governed by the Employee Retirement Income Security Act (ERISA). ERISA is administered by the U.S. Department of Labor's Pension and Welfare Benefits Administration.

This April 18 indictment came as a result of an investigation by PWBA's Atlanta Regional Office and was prosecuted by the Cobb County District Attorney's Office.

State of Georgia v. Huff
Criminal No. 971339

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Archived News Release — Caution: Information may be out of date.

Employee Benefits Security Administration
April 24, 1997
Release Number