WASHINGTON, DC - The U.S. Department of Labor today released a policy statement regarding Association Health Plans (AHPs). The Department disagrees with the district court's ruling in The State of New York v. United States Department of Labor. The U.S. Department of Justice filed an appeal on April 26, 2019. 

CHICAGO, IL – The U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, granted a motion allowing Morgan Administration Inc. and associated debtors doing business as Home Owners Bargain Outlet (HOBO), to engage Paradigm Health Plans, the approved third-party administrator, to reconcile and administer outstanding medical claims for employees participating in HOBO's health plan.

CHICAGO, IL – The U.S. District Court for the Northern District of Illinois has sentenced Lake County, Illinois-based business owner Richard Booy, to serve five years imprisonment followed by an additional three years of supervised release, and to make $1,439,678 million in restitution for defrauding his clients in a Ponzi-type scheme totaling approximately $2 million. As a result of the the March 18, 2019 sentencing, Booy is statutorily barred from serving as a fiduciary under the Employee Retirement Income Security Act (ERISA).

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 entered a consent judgment against the individual defendants of a failing California-based Multiple Employer Welfare Arrangement (MEWA) in a Department lawsuit aimed at protecting more than 16,000 participants and beneficiaries.

WEST PALM BEACH, FL – After a U.S. Department of Labor Employee Benefits Security Administration (EBSA) investigation of a multi-million dollar pension trust fraud, the U.S. District Court for the Southern District of Florida has sentenced William H. Minor to 41 months in prison, three years of supervised release, a special assessment of $100, and ordered him to pay $1,636,604 restitution.

WEST PALM BEACH, FL – 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 Florida has sentenced one co-founder of several Florida laboratory marketing companies and substance abuse recovery homes to prison and two other co-founders to probation for their parts in a widespread healthcare fraud scheme.

MIAMI, FL – 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 Florida has sentenced Tina Marie Barbuto – a former licensed mental health counselor in Margate, Florida – to serve 36 months in prison followed by 36 months of supervised release. Additionally, Barbuto will pay $3,132,806 in restitution and a $100 special assessment for her role in a conspiracy to commit healthcare fraud.

LOS ANGELES, CA – The U.S. Department of Labor has obtained a temporary restraining order in the U.S. District Court for the Central District of California against Riverstone Capital LLC; NexGen Insurance Services Inc.; and NGI Brokerage Services Inc. (collectively, “Riverstone”) and the individuals that operate it.

LANSING, MI – After an investigation by the U.S. Department of Labor's Employee Benefits Security Administration (EBSA), and the 30th Circuit Court for Ingham County, Michigan, the Michigan Circuit Court for Ingham County has sentenced Allen G. Ollenburger – a resident of Lansing, Michigan – to serve 45 days in Jail, 60 months' probation, and ordered him to make $48,285 in restitution after he pleaded guilty to cashing General Motors' pension checks issued to his deceased mother.

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 Sergio Amador – a member of the International Longshore and Warehouse Union (ILWU), Local 13 – to 12 months and one day in prison and ordered him to make $201,000 in restitution for defrauding the union’s Welfare Plan.

NEW YORK – After an investigation by the U.S. Department of Labor's Employee Benefits Security Administration (EBSA), the U.S. District Court for the District of New Jersey has sentenced Sergio Acosta – the former president and a representative of United Auto Workers Local 2326 in Edison, New Jersey – to three years of probation, and ordered him to pay $32,000 in restitution for embezzling funds from the union's employee benefit plan.

WASHINGTON, DC – The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) hosts a variety of seminars across the country and webcasts in order to enhance understanding of the Employee Retirement Income Security Act of 1974.

MIAMI, FL – 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 Florida entered a consent judgment and order between the U.S. Department of Labor and Kevin F. Kirkeide, a former chief financial officer for IOTC Financial Services LLC and Global Oil Financial Services LLC – both based in Boca Raton, Florida.

MIAMI, FL – 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 Florida has sentenced Lanny Todd Fried – of Palm Beach Gardens, Florida – to 57 months in prison and 36 months of supervised release; and ordered him to pay a $81,163 fine for his role in a healthcare-related, money-laundering scheme.

MIAMI, FL – 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 Florida has sentenced Lawrence Michael Weisberg – President of Weisberg & Associates PA in Boca Raton, Florida – to 6 months in prison and 12 months of supervised release, ordered him to pay a $7,500 fine, and forfeit $41,234 for his role in a healthcare fraud-related money laundering scheme.

WASHINGTON, DC – The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) today released the 2018 Form M-1 and related instructions. Administrators of Multiple Employer Welfare Arrangements (MEWAs) that provide medical benefits, including Association Health Plans (AHPs), must file the Form M-1 with the Department annually and following certain events, such as a MEWA’s expansion into a new State. 

COLUMBUS, IN – The U.S. District Court for the Southern District of Indiana has ordered the fiduciaries of the Dorel Juvenile Group Inc. Welfare Benefit Plan to pay restitution of $145,635 to 596 employees of the Dorel Juvenile Group Inc.’s California, Indiana, and Massachusetts facilities who paid a tobacco use surcharge as part of their medical insurance premium.

NASHVILLE, TN – The U.S. District Court for the Middle District of Tennessee has sentenced Bart Posey – of Springfield, Tennessee – to 168 months in prison, 36 months of supervised release, and ordered the defendant to pay $6,524,888 restitution after a U.S. Department of Labor Employee Benefits Security Administration (EBSA) investigation discovered a multi-million dollar insurance fraud that affected more than 17,000 individuals nationwide.

LOUISVILLE, KY – As a result of 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 David Perez - co-founder of a Louisville, Kentucky, medical clinic - to 27 months in prison, two years of supervised release, and to pay $941,337 restitution for defrauding healthcare benefit programs.

MIAMI, FL – The U.S. District Court for the Southern District of Florida has sentenced the chief executive officer and the chief operating officer of Smart Lab LLC to prison and ordered them and the company to pay more than $9.6 million in restitution after a federal investigation found that they had defrauded healthcare benefit programs.