US Labor Department files suit seeking restoration of plan assets to health, welfare plan and retirement plan of union in Windsor Mill, Maryland

Date of Action: Nov. 16, 2015

Type of Action: Complaint

Name(s) of Defendant(s): Ricardo Silva, Maryland Association of Correctional & Security Employees Inc., Charles Ezrine, State Employee Benefits Inc., AmeriGuard Security Services Inc., Maryland Association of Correctional & Security Employees Health & Welfare Plan, and Maryland Association of Correctional & Security Employees Retirement Plan

Allegations: Based on an investigation conducted by the U.S. Department of Labor's Employee Benefits Security Administration, the Secretary of Labor filed a complaint alleging:

Maryland Association of Correctional & Security Employees Inc. (MACSE) established a health and welfare plan and a retirement plan for its members around August 2010, funded by employer contributions from AmeriGuard Security Services Inc. Silva, MACSE, and AmeriGuard were plan fiduciaries for both plans, and Ezrine and State Employee Benefits Inc. were health plan fiduciaries.

Between August 2010 and October 2013, Silva and MACSE mishandled and misappropriated health and welfare plan assets and retirement plan assets. Ezrine and State Employee Benefits Inc. mishandled and misappropriated health and welfare plan assets, and AmeriGuard took no steps to stop these actions. As a result of these actions, union members did not receive all benefits owed to them.

Relief: The complaint seeks the restitution of losses caused to the plans, including lost interest, as a result of fiduciary breaches; the removal of plan fiduciaries from both plans; barring MACSE, Silva, State Employee Benefits Inc. and Ezrine from becoming a fiduciary in the future; and appointing an independent fiduciary to administer and distribute the remaining assets of the retirement plan.

Court: United States District Court for the District of Maryland

Civil Action: 15-03484

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