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Release Date: 02/16/2005
Release Number: 05-258-NEW
Contact Name: Gloria Della
Phone Number: 202.693.8664
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New York, New York - The former plan
administrator of the Solidarity of Labor Organizations Health Benefit
Fund, Bronx, New York, has been sentenced to 12 months and one day in
prison plus three years of supervised release for embezzling from a health
fund. William Fagello also was ordered to restore $107,000 to the health
plan. |
The
criminal action was based on an investigation conducted by the New York
regional office of the U.S. Department of Labor’s Employee Benefits
Security Administration (EBSA) and the Office of the Inspector General. |
“Theft
of employee benefit assets jeopardizes the benefits of workers,” said
Ann L. Combs, assistant secretary of labor for employee benefits security.
“Our legal action sends a clear message that we are committed to
protecting the benefit promises made to workers.” |
Fagello
was charged December 2 and plead guilty December 12, 2004 to embezzlement,
conspiracy to commit embezzlement from the health fund, and aiding and
abetting in a criminal act. The fund is a multiple employer welfare
arrangement governed by the Employee Retirement Income Security Act. The
scheme primarily involved writing checks from the health fund to pay for
the construction and operation of a nightclub. |
In fiscal year 2004, EBSA achieved record monetary
results of $3.1 billion related to the pension, 401(k), health and other
benefits of millions of American workers and their families. Employers and
workers can contact the New York regional office at 212.607.8600 or
through EBSA’s toll free number, 1.866.444.EBSA (3272), for help with
problems relating to private-sector pension and health plans. |
The
case was prosecuted by the U.S. Attorney’s Office for the Southern
District of New York. |
(U.S.
v. Fagello)
Criminal No. 04 CR1210 |
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