U.S. Department of Labor recovers more than $750,000 for Georgia Plumbers Trade Association Health Plan

Archived News Release — Caution: Information may be out of date.

Atlanta – The U.S. Department of Labor has obtained consent judgments restoring an additional $250,000 to the Georgia Plumbers Trade Association Health Plan in Griffin, Georgia, and requiring the payment of a $50,000 civil penalty to the federal government. Earlier this year, the court ordered restitution of more than $500,000 for losses suffered by the plan.

The department filed two separate lawsuits in U.S. District Court for the Northern District of Georgia that alleged the defendants affiliated with the health plan violated provisions of the Employee Retirement Income Security Act (ERISA). Defendants named in the suits were Marc Meixner, GPTA Benefits Group Inc., Leslie E. Smith, Employers OneSource Inc., David Sherman, Ron Anderson, Windell Peters, and the association. Defendants Meixner and Smith allegedly failed to properly evaluate and underwrite benefits, failed to adjust rates and benefits to pay promised benefits, failed to adequately fund claims owed by the plan, and paid excessive fees for services provided to the health plan. These defendants’ affiliated firms, GPTA Benefits Group and Employers OneSource, improperly dealt with the plan’s assets and received compensation for their personal benefit, the department further alleged.

Anderson and Peters, as officers of the Georgia association and plan trustees, allegedly failed to oversee, monitor and control the health plan’s assets.

In addition to the restitution, the court provided injunctive relief against various defendants and permanently barred Anderson, Peters, and Meixner from serving as fiduciaries to any plan governed by ERISA in the future.

The association is a nonprofit organization that provided education and resources to assist Georgia plumbers in complying with building code changes. The health plan was a multiple employer welfare arrangement that provided medical coverage to approximately 500 participants in Georgia.

“Workers and their families have been saddled with health claims because of the improper actions of the defendants in the Georgia Plumbers case,” said Bradford P. Campbell, assistant secretary for the Labor Department’s Employee Benefits Security Administration (EBSA). “This legal action restores money to pay the health claims of these workers.”

The case was investigated by EBSA’s Atlanta Regional Office. Employers and workers can reach EBSA’s Atlanta Regional Office at 404.302.3900 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans. In fiscal year 2007, EBSA achieved monetary results of $1.5 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Chao v. Marc Meixner
Civil Action File Number 1:07-CV-0595 WSD

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