Long Island Health Plan Administrator Pleads Guilty To Embezzlement And Mail Fraud

Archived News Release — Caution: Information may be out of date.

The president and owner of Employee Health Plan Administrators, Inc. of Westbury, N.Y. pleaded guilty to one count each of embezzlement and mail fraud in connection with employer contributions he failed to remit to the health and welfare plans of local 119 of the Brotherhood of Industrial Workers in New York City.

Clarke Lasky is scheduled to be sentenced on April 10 by Judge Arthur D. Spatt. He pleaded guilty on Jan.23, 1998 after being indicted Feb. 6, 1997 for collecting on two separate occasions monthly employer contributions and failing to remit the money to the fund. He also was charged with converting those funds to his own use and embezzling approximately $750,000.

According to John E. Wehrum Jr., Regional Director of the U. S. Department of Labor’s Pension and Welfare Benefits Administration (PWBA), and John McGlynn, Regional Inspector General of the department’s Office of Investigations — both located in New York City -- alleged that Lasky, through EHPA, was the designated administrator and collective bargaining representative on behalf of hundreds of employers having associate membership with local 119.

EHPA operated as a health benefit consultant and administrator and represented employers with respect to matters of health benefit coverage under the BIW Health & Welfare Fund of Local 119. The firm was contractually obligated to collect employer and employee health benefit contributions from those employers and transfer them to the BIW Fund.

This case was jointly investigated by the department’s New York Office of PWBA and Inspector General along with the U. S. Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorney for the Eastern District of New York, Joseph R.Conway.

(U. S. v. Lasky)

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Archived News Release — Caution: Information may be out of date.

Contact Name: GLORIA DELLA
Phone Number: 202.219.8921