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Plan's Case Against Participant's COBRA Fraud Not Preempted by ERISA
Deloitte & Touche Human Capital Advisory Services
Oct. 21, 2002
AFTRA Health Fund v. Biondi, __ F. 3d __ (7th Cir., Sept. 6, 2002). Excerpt: A plan participant who concealed his divorce to keep the former wife in his multiemployer health plan as an active participant, rather than pay COBRA premiums, can be sued for state common law fraud by the health plan according to the Seventh Circuit Court of Appeals. But plan fiduciaries have no equitable remedy against the participant under ERISA.
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