Reportable Transactions & 419 Plans Litigation: CJA and associates 419 412i section 79 scam audits...

Reportable Transactions & 419 Plans Litigation: CJA and associates 419 412i section 79 scam audits...: CJA and associates 419 412i section 79 scam audits lawsuitsIn the third case, Harris v. Koresko et al (docket number: 2:09-cv-00988-MAM), the DOL was granted a limited injunction by the U.S. District Court for the Eastern District of Pennsylvania. The district court agreed with the DOL’s allegations that harm was being done, by the Pennsylvania-based fiduciaries of welfare benefit plans sponsored by employers nationwide, to the plans’ participants.

Defendants John J. Koresko, V, PennMont Benefit Services, Inc., Penn Public Trust, Koresko and Associates, P.C., and Koresko Law Firm, P.C., their agents, employees, service providers, accountants, attorneys, and any other party acting at their direction, were removed from positions held with the Single Employer Welfare Benefit Plan Trust (SEWBPT) and/or the Regional Employers Assurance League Voluntary Employees’ Beneficiary Association Trust (REAL VEBA). The defendants were also enjoined from serving as administrator, fiduciary, officer, trustee, custodian, counsel, agent, representative (including acting as attorney in fact), or consultant or adviser of the plans or employer arrangements participating in the SEWBPT and/or the REAL VEBA.

An independent fiduciary for the plans was also appointed by the court to obtain an inventory of assets and to distribute the assets of the plans appropriately.