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Release Date: January 18, 2008
Release Number: 08-58-ATL (011)
Contact Name: Dan Fuqua/Michael Wald
Phone Number: 404.562.2078/404.562.2076
Atlanta – The U.S. Department of Labor has
obtained a consent judgment and order in the U.S. District Court for the
Northern District of Georgia requiring Marc Meixner to restore $509,624
to the Georgia Plumbers Trade Association Health Plan.
Defendant Meixner operated GPTA Benefits Group Inc.,
a company that acted as the marketer and administrator of the health
plan, which served 28 employer groups with 500 participants in Georgia.
When the plan was terminated in 2004, participants were left with more
than $500,000 in unpaid claims.
“The law prohibits those entrusted with employee
benefit assets from misusing those funds,” said Bradford P. Campbell,
assistant secretary of the Labor Department’s Employee Benefits
Security Administration (EBSA).
The consent judgment settles a department lawsuit
against Meixner alleging that he violated his fiduciary responsibilities
under the Employee Retirement Income Security Act (ERISA). The judgment
also bars him from future service as a fiduciary to any plan covered by
ERISA.
In 2007, the Labor Department sued Meixner, GPTA
Benefits Group Inc., affiliate Employers OneSource Inc., Leslie E. Smith
and David Sherman. The defendants 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. They
also were alleged to have improperly dealt with the plan’s assets and
received compensation for their personal benefit. The suit against the
remaining defendants is ongoing.
The sponsor of the plan, Georgia Plumbers Trade
Association for Continuing Education Inc., remains in business. The
association is a nonprofit organization that provides education and
resources to assist Georgia plumbers in complying with building code
changes. GPTA Benefits Group Inc. is no longer in business.
The case was investigated by EBSA’s Atlanta
Regional Office, which can be reached at 404.302.3900 or toll-free at
1.866.444.EBSA (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
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