News Releases

October 19, 2018

U.S. Department of Labor Obtains Consent Order and Judgment To Distribute Assets to Participants in Chicago Hospital Retirement Plan

CHICAGO, IL – The U.S. Department of Labor obtained a consent order and judgment requiring the appointment of an independent fiduciary to the Sacred Heart Hospital Profit Sharing 401(k) Plan. The independent fiduciary will manage and distribute assets of the Chicago-based retirement plan to its nine participants.

October 19, 2018

U.S. Department of Labor Obtains Consent Order and Judgment To Distribute Assets to Participants in Chicago Hospital Retirement Plan

CHICAGO, IL – The U.S. Department of Labor obtained a consent order and judgment requiring the appointment of an independent fiduciary to the Sacred Heart Hospital Profit Sharing 401(k) Plan. The independent fiduciary will manage and distribute assets of the Chicago-based retirement plan to its nine participants.

October 19, 2018

Federal Court Orders Illinois Pension Plan to Restore $419,758 Following U.S. Department of Labor Investigation

CHICAGO, IL – The U.S. Department of Labor has entered into an agreement with the fiduciaries of the Neuroscience Center LLC Defined Benefit Pension Plan to restore $419,758 to the Deerfield, Illinois-based retirement plan. The agreed-upon restoration is part of a consent judgment approved by the U.S. District Court, Northern District of Illinois.

October 17, 2018

Federal Court Appoints Successor Fiduciary to Oversee Distribution Of $46,371 to Participants of Abandoned Profit Sharing Plan

WINSTON-SALEM, NC – The U.S. District Court for the Middle District of North Carolina has appointed AMI Benefit Plan Administrators Inc. as the successor fiduciary for the James D. Blankenbeckler, DDS Profit Sharing Plan after the U.S. Department of Labor's Employee Benefits Security Administration (EBSA) found violations of the Employee Retirement Income Security Act.

October 4, 2018

U.S. Department of Labor Seeks to Amend Complaint to Protect Participants And Beneficiaries of Failing Multiple Employer Welfare Plan

CHICAGO, IL – The U.S. Department of Labor has filed a motion to amend its complaint requesting that the U.S. District Court, Northern District of Illinois, include additional defendants and claims in its action seeking to pay more than $50 million in unpaid participant health benefit claims in the AEU Holdings LLC Employee Benefit Plan.

October 4, 2018

U.S. Department of Labor Litigation Results in Atlanta Trust Company Paying $4.5 Million in Restitution to Employee Stock Ownership Plan

RALEIGH, NC – The U.S. District Court for the Eastern District of North Carolina has signed a consent judgment approving a settlement between the U.S. Department of Labor and Reliance Trust Co. Inc. involving the Tobacco Rag Processors Inc. Employee Stock Ownership Plan. The consent judgment requires Reliance Trust Co. Inc. – an Atlanta, Georgia, company – to pay $4,545,454 back to the plan within 30 days. Once the payment is made, the Department will assess a civil penalty of $454,545 against Reliance Trust Co. Inc.   

October 3, 2018

Compliance Assistance for Association Health Plans Now Available at Employer.gov

WASHINGTON, DC – The U.S. Department of Labor has added compliance assistance materials on Association Health Plans (AHPs) to its new Employer.gov website that will help job creators and plan sponsors understand their Employee Retirement Income Security Act of 1974 (ERISA) obligations when setting up and managing AHPs.

September 17, 2018

Federal Court Orders Maryland Business Owner to Pay $354,175 in Restitution, Serve Prison Term for Theft from Employee Benefit Plan

GREENBELT, MD – The U.S. District Court for the District of Maryland, Southern Division, has sentenced a Maryland business owner to one year and one day of imprisonment, and $354,175 in restitution for violations of the Employee Retirement Income Security Act (ERISA). Nathan G. Williams pleaded guilty to one count of theft or embezzlement from his company's employee benefit plan in violation of 18 U.S.C. § 664.

August 10, 2018

U.S. Department of Labor Investigation Results in Court Ordered Restitution of $491,890 After 28 Union Members Pleaded Guilty to Filing False Claims

HAMMOND, IN – After an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), Luka Kljajic - a member of the Indiana/Kentucky/Ohio Regional Council of Carpenters (IKORCC) - appeared before U.S. District Court Judge Philip P. Simon in Indiana and pleaded guilty to embezzlement from the union’s healthcare fund. Kljajic is the 28th member of the IKORCC charged in federal court for submitting false claims to the union’s healthcare fund. To date, the court has ordered $491,890 in restitution to the IKORCC Welfare Fund.

August 7, 2018

Federal Court Orders Kansas City Area Business Owner to Pay $4.3 Million in Restitution, Serve Prison Term for Fraud and Theft of Employee Benefit Plan

KANSAS CITY, KS – The U.S. District Court for the District of Kansas has sentenced Leavenworth, Kansas, business owner Brenda Wood to serve 50 months of imprisonment followed by an additional five years of supervised release, and to make more than $4.3 million in restitution for bank fraud and violations of the Employee Retirement Income Security Act. Wood previously pleaded guilty to two counts of bank fraud and one count of theft from an employee benefit plan.

August 1, 2018

U.S. Department of Labor Invites Nominations for ERISA Advisory Council

WASHINGTON, DC – The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) today announced that it is accepting nominations to serve on the Advisory Council on Employee Welfare and Pension Benefit Plans, known as the ERISA Advisory Council. The terms of five Council members expire on Dec. 31, 2018.

July 10, 2018

Federal Court Sentences Brentwood, Tennessee, Resident to 66 Months in Prison after U.S. Department of Labor Investigators Uncover Health Insurance Scam

NASHVILLE, TN – After a U.S. Department of Labor Employee Benefits Security Administration (EBSA) investigation, the U.S. District Court for the Middle District of Tennessee in Nashville has sentenced Timothy Wayne Thomas of Brentwood, Tennessee, to serve 66 months in prison for his criminal conduct in marketing and misrepresenting health insurance plans. The sentence also requires him to forfeit $1,500,000 and pay more than $2,500,000 in restitution to the victims of the fraud scheme.

June 29, 2018

U.S. Department of Labor Reaches Agreement to Restore $5.45 Million to Texas-Based Employee Stock Ownership Plan

LUBBOCK, TX – The U.S. Department of Labor has entered into an agreement with the fiduciaries of Cactus Feeders Inc. Employee Stock Ownership Plan (ESOP) who will repay $5.45 million in plan losses to the ESOP. The agreement resolves a March 10, 2016, civil suit brought by the Department alleging fiduciaries failed to fulfill their obligations under the Employee Retirement Income Security Act (ERISA) of 1974. The allegations stem from a December 2010 stock transaction that resulted in the ESOP overpaying for the outstanding shares of the company.

June 28, 2018

Florida Substance Abuse Recovery Center Owner Receives Prison Sentence, Ordered to Make $5,122,886 in Restitution for Healthcare Fraud

BOYNTON BEACH, FL – After a U.S. Department of Labor Employee Benefits Security Administration (EBSA) investigation, the U.S. District Court for the Southern District of Florida has sentenced Anthony D. Jackson, owner of Pantherview Sober House LLC, to 42 months in prison and three years of supervised release. The sentencing is in addition to court-ordered restitution of $5,122,886 following a previous guilty plea to conspiring with others to commit healthcare fraud.

June 21, 2018

Five New Members Appointed to the 2018 ERISA Advisory Council

WASHINGTON, DC – Today the U.S. Department of Labor announced the appointments of five new members as well as chair and vice chair to the 2018 Advisory Council on Employee Welfare and Pension Benefit Plans, known as the ERISA Advisory Council.

June 19, 2018

President Donald J. Trump Helps Millions of Americans Employed By Small Businesses Gain Access to Quality, Affordable Health Coverage

WASHINGTON, DC – The U.S. Department of Labor is helping millions of working Americans gain access to quality, affordable health insurance for themselves and their families.

Many small businesses and their employees have struggled with government restrictions that limit access to quality, affordable health coverage. This Association Health Plan (AHP) reform will address many of the inequities between small and large businesses in access to that coverage.

June 12, 2018

U.S. Department of Labor Works With Insurers to Distribute Up to $116 Million to Retirement Plan Participants

WASHINGTON, DC – Metropolitan Life Insurance Company and Brighthouse Life Insurance Company have agreed to work with the U.S. Department of Labor to determine whether more than 2,000 retirement plans in their custody are abandoned. If plans are found to be abandoned, the companies will submit them to the Department's Abandoned Plan Program (APP). This may result in distributions of up to approximately $116 million to 20,000 participants. Ascensus Trust Company will be submitting plans to the Abandoned Plan Program on behalf of MetLife and Brighthouse.

June 12, 2018

U.S. Department of Labor Reaches Agreement to Restore More Than $1 Million to Chicago-based Health Insurance Trust Fund

CHICAGO, IL – The U.S. Department of Labor has entered into an agreement with the fiduciaries of the National Allied Workers Union (NAWU) Local 831 Insurance Trust Fund to restore $1,113,636 to the Chicago-based health insurance trust fund after an investigation found violations of the Employee Retirement Income Security Act (ERISA). The fiduciaries will make an immediate payment of $813,636 to the NAWU Local 831 Insurance Trust Fund – Claims Reserve Account and $300,000 to the NAWU Local 831 Insurance Trust Fund – Independent Fiduciary Payment Account.

May 24, 2018

U.S. Department of Labor Investigation Results in Federal Court Ordering Independent Fiduciary to Distribute $535,790 in Retirement Plan Assets

McLEAN, VA - The U.S. District Court for the Eastern District of Virginia has ordered the appointment of an independent fiduciary to distribute $535,790 in assets to 24 participants of the Cambridge Technology Group Inc. 401(k) Plan and removed Cambridge Technology Group Inc. and the company’s president and CEO Andrew Carrington as fiduciaries in a default judgment entered on May 22, 2018.

May 17, 2018

Former Owners of Florida Substance Abuse Recovery Center’s Sentenced to Prison and Ordered to Pay $4,045,364 in Restitution for Healthcare Fraud

DELRAY BEACH, FL – The U.S. District Court for the Southern District of Florida has sentenced the owners of Angel’s Recovery - a Delray Beach substance abuse recovery residence - to prison and ordered them to pay $4,045,364 in restitution after a federal investigation found that they had defrauded healthcare benefit programs. The court sentenced Tovah Jasperson and her father, Alan Martin Bostom, to 78 months and 30 months in prison, respectively, and three years of supervised release; and ordered they be jointly responsible for restitution.