Subscribe Now!
Free Daily News, Jobs, Webcasts, Discussions
Display and Distribute
Your Job Openings
COVID-19 News
COVID-19 Webcasts

Featured Jobs

Plan Administrator

Forrestall CPAs, LLC
(Buford GA)

Forrestall CPAs, LLC logo

Free Daily News and Jobs

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Get the BenefitsLink app LinkedIn
Twitter
Facebook

By Date   |   By Company Name


View More Press Releases by Employee Benefits Security Administration [EBSA], U.S. Department of Labor

Press release:

Federal Court Orders Maryland Company to Restore $28,650,604 To Employer Benefit Plans After U.S. DOL Investigation

Issued by: Employee Benefits Security Administration [EBSA], U.S. Department of Labor

Date: Apr. 7, 2020

BETHESDA, MD, April 6, 2020 – The U.S. District Court for the District of Maryland has issued a summary judgment requiring defendants WH Administrators, its owner and chief executive officer (CEO) and chief operating officer to restore $28,650,604 to health and welfare plans sold to employers by the now defunct Bethesda, Maryland-based benefits administration company.

The action follows a U.S. Department of Labor Employee Benefits Security Administration (EBSA) investigation. EBSA found that fiduciaries WH Administrators, CEO Brenden Turner and Chief Operating Officer Susanne Sheil promoted, sold and administered self-funded welfare plans to more than 100 employers, and promised that – if the employers paid its premiums – all medical claims properly accrued under the plan would be paid, and that the employers would bear no additional responsibility. EBSA determined the defendants violated the Employee Retirement Income Security Act (ERISA) when they failed to act prudently and in the best interests of the plan participants and failed to provide proper plan funding. The defendants also failed to pay incurred medical expenses for claims filed by the plans’ participants, and engaged in multiple prohibited transactions when they collected fees and failed to inform the employers.

The summary judgment requires the defendants to restore $28,650,604 to the health and welfare plans, plus disgorge profits of $397,189 from impermissible commissions. The judge also entered a permanent injunction against the defendants that permanently prohibits them from acting – individually or collectively – as fiduciaries or service providers for any ERISA-covered employee benefit plan.

“The U.S. Department of Labor is committed to protecting the benefits of America’s workers,” said Assistant Secretary of Labor for the Employee Benefits Security Administration Preston Rutledge. “We will continue to aggressively pursue and hold accountable those who misuse assets intended for health insurance purposes.”

“Now more than ever, employers and employees must be able to rely on promised healthcare benefits,” said Solicitor of Labor Kate S. O’Scannlain. “The U.S. Department of Labor stands prepared to hold those who offer sham healthcare arrangements accountable for the losses related to unpaid health claims.”

EBSA’s Washington, D.C., district office investigated and the Regional Solicitor in Philadelphia litigated on the department’s behalf.

Employers and workers can reach EBSA toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans. Additional information can be found at https://www.dol.gov/agencies/ebsa.

EBSA’s mission is to assure the security of the retirement, health and other workplace related benefits of America’s workers and their families. EBSA accomplishes this mission by developing effective regulations; assisting and educating workers, plan sponsors, fiduciaries and service providers and vigorously enforcing the law.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

BL:hh

View More Press Releases by Employee Benefits Security Administration [EBSA], U.S. Department of Labor


This is a press release issued by the company named above. BenefitsLink is not the author. Use of any information obtained from this release is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by BenefitsLink.

© 2020 BenefitsLink.com, Inc.