Former Administrator Sentenced for Embezzling More Than $21,000 from Riggers’ Welfare Plan

Archived News Release — Caution: Information may be out of date.

Philadelphia, Pennsylvania - The former benefits administrator of the Riggers’ Local 161 Annuity Fund, located in Philadelphia, today was sentenced to six months of home confinement, three years of probation, and fined $2,000 after pleading guilty to embezzling approximately $21,888 from the fund between 2000 and 2002.

The criminal action was based on an investigation conducted by the Philadelphia regional offices of the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) and Office of Labor-Management Standards (OLMS).

“Theft of employee benefit assets jeopardizes benefits promised to workers,” said Mabel Capolongo, director of EBSA’s Philadelphia regional office. “This case sends a clear message that the department is committed to protecting the benefit promises made to workers.”

Kevin Kulp of Philadelphia pleaded guilty in March to embezzlement of assets from the annuity fund. Kulp, who served as the benefit funds administrator, misused office signature stamps to issue 36 checks made payable to himself. The checks were issued without the knowledge or authorization of fund officials and were disguised as extra salary checks. Under a plea arrangement, Kulp has made restitution to the fund, including lost earnings.

The annuity fund covered approximately 490 participants under a collective bargaining agreement with sponsoring employers throughout Pennsylvania. As of November 2004, the Riggers Local 161 Annuity Fund merged with the Iron Workers Local 405 Annuity Fund.

The U.S. Attorney’s Office for the Eastern District of Pennsylvania prosecuted the case, and the sentence was entered in U.S. District Court for the Eastern District of Pennsylvania.

Employers and workers can reach the Philadelphia regional office of the EBSA at 215.861.5300 or toll-free number at 1.866.444.EBSA (3272) for help with problems relating to private-sector retirement and health plans

(U.S. v. Kulp)
Criminal No. 2:06-00111

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Archived News Release — Caution: Information may be out of date.

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