Plaintiffs allege that between 2004 and the end of 2013, John Koresko and affiliated individuals in the course of operating multiple-employer welfare arrangements known as REAL VEBA and SEWBP, converted and misused assets of the trusts in an amount in excess of $35 million, as set forth more fully in the Perez Action. The Court, however, entered judgment against the Koresko defendants in the Perez Action in the amount of approximately $19 million, the shortfall in trust assets as found by the Court. Plaintiffs allege that the Defendants are either co-fiduciaries who failed to take appropriate steps to prevent the conversions, co-fiduciaries or parties-in-interest who improperly benefited from transactions involving the trusts, recipients of the improperly spent funds, or parties who otherwise knowingly participated in such breaches. As to F&M Trust, Plaintiffs allege that the F&M Trust failed to perform its fiduciary duties in accordance with the prudent man standard of care, knowingly participated in and facilitated misconduct by its co-fiduciaries, and failed to take reasonable steps to prevent or remedy any fiduciary breaches of co-fiduciaries. Plaintiffs purport to state claims against F&M Trust under the Employee Retirement Income Security Act (ERISA) and common law.
as an expert witness lance wallach has never lost www.lance wallach.com Raymond Ankner says he move
Hartford, CT: A consumer fraud class action lawsuit has been filed against Chicago-based CJA and Associates and Kansas City, Missouri-based Fidelity Security Life Insurance Company (FSL).
The lawsuit alleges that CJA and FSL breached fiduciary duties in duping small business owners into investing millions of dollars of employee retirement benefit money in FSL annuities when up to 95% of the initial money invested was being siphoned off in commissions and fees.
The so-called Section 412 (e)(3) plans are under attack from the IRS as illegitimate attempts to avoid federal taxes. The lawsuit alleges that by advising investment in these plans CJA and FSL breached federal laws governing advice given to employee benefit plans.
CJA was retained as “third-party administrator of the plan” with “primary discretion to make sure the plan complied with ERISA regulations.” CJA had recommended funding the plan through life insurance and had represented that the costs for premiums under the plan would remain constant. In fact, premiums rose substantially and threatened to push IHI into bankruptcy. IHI notified CJA of its intent to terminate the plan, but CJA failed to timely prepare the required notices to participants. Errors in the plan termination process resulted from errors by CJA or incorrect advice from CJA. CJA breached its duties as an ERISA fiduciary, breached its contractual duties to IHI and breached the duty of care CJA owed IHI.
Plaintiffs allege that between 2004 and the end of 2013, John Koresko and affiliated individuals in the course of operating multiple-employer welfare arrangements known as REAL VEBA and SEWBP, converted and misused assets of the trusts in an amount in excess of $35 million, as set forth more fully in the Perez Action. The Court, however, entered judgment against the Koresko defendants in the Perez Action in the amount of approximately $19 million, the shortfall in trust assets as found by the Court. Plaintiffs allege that the Defendants are either co-fiduciaries who failed to take appropriate steps to prevent the conversions, co-fiduciaries or parties-in-interest who improperly benefited from transactions involving the trusts, recipients of the improperly spent funds, or parties who otherwise knowingly participated in such breaches. As to F&M Trust, Plaintiffs allege that the F&M Trust failed to perform its fiduciary duties in accordance with the prudent man standard of care, knowingly participated in and facilitated misconduct by its co-fiduciaries, and failed to take reasonable steps to prevent or remedy any fiduciary breaches of co-fiduciaries. Plaintiffs purport to state claims against F&M Trust under the Employee Retirement Income Security Act (ERISA) and common law.
ReplyDeleteas an expert witness lance wallach has never lost www.lance wallach.com
ReplyDeleteRaymond Ankner says he move
Hartford, CT: A consumer fraud class action lawsuit has been filed against Chicago-based CJA and Associates and Kansas City, Missouri-based Fidelity Security Life Insurance Company (FSL).
The lawsuit alleges that CJA and FSL breached fiduciary duties in duping small business owners into investing millions of dollars of employee retirement benefit money in FSL annuities when up to 95% of the initial money invested was being siphoned off in commissions and fees.
The so-called Section 412 (e)(3) plans are under attack from the IRS as illegitimate attempts to avoid federal taxes. The lawsuit alleges that by advising investment in these plans CJA and FSL breached federal laws governing advice given to employee benefit plans.
CJA was retained as “third-party administrator of the plan” with “primary discretion to make sure the plan complied with ERISA regulations.”
ReplyDeleteCJA had recommended funding the plan through life insurance and had represented that the costs for premiums under the plan would remain constant. In fact, premiums rose substantially and threatened to push IHI into bankruptcy.
IHI notified CJA of its intent to terminate the plan, but CJA failed to timely prepare the required notices to participants.
Errors in the plan termination process resulted from errors by CJA or incorrect advice from CJA.
CJA breached its duties as an ERISA fiduciary, breached its contractual duties to IHI and breached the duty of care CJA owed IHI.