|
Release Date: 07/16/2003
Release Number: BOS 2003-170
Contact Name: John M. Chavez
Phone Number: 617.565.2075
|
Printer Friendly
Version
|
|
Boston, Massachusetts - Ronald Coia and three
other trustees of the Rhode Island Laborers’ Legal Services Plan have
been sued by the U.S. Department of Labor for alleged violations of the
Employee Retirement Income Security Act (ERISA), the federal law that
protects private sector employee benefit plans. |
The Rhode Island Laborers’ Legal Services Plan is a
collectively bargained benefit plan that provides legal services to
members of the Rhode Island Laborers’ Union and their beneficiaries. It
was established December 30, 1974, by the Rhode Island Chapter, Associated
General Contractors of America, Inc., the Rhode Island Road Builders
Associations, Inc. and the Rhode Island Laborers General Council. |
Named in the suit, filed July 14 in the U.S. District
Court for Rhode Island, are plan trustees Ronald Coia, Edward DiRissio,
Michael Gammino, and David Rampone. |
The Labor Department’s suit states that since January
1997, the law firm Lepore and Coia, LTD and the law offices of G. Chandler
Beals are the two law firms that have provided legal services to plan
participants. During 1997, Lepore and Beals each received monthly
retainers of $9,000. From January 1, 1998 through on or about July 1,
2002, Lepore and Beals each received retainers of $11,000 per month.
Throughout this period, the number of plan participant matters handled by
Beals was substantially fewer than the number of matters handled by Lepore. |
James Benages, Boston regional director for the Labor
Department’s Employee Benefits Security Administration (EBSA), said the
suit alleges the billing systems of the law firms did not track the number
of hours worked by staff attorneys on plan cases every year, nor were
there written contracts between the plan and the law firms. |
The suit charges the defendants with failing to
adequately oversee and monitor the quality of legal services provided to
plan participants by the law firms; failure to oversee and monitor the
number of referrals to and hours worked by the firms, and failure to
adequately monitor the cost-effectiveness of services provided by the law
firms to ensure that the plan was receiving appropriate value for the
money provided to the law firms. |
“The law requires those who administer employee
benefit plans to make sure that every dollar of plan assets is used wisely
and solely for the benefit of the plan’s participants and
beneficiaries,” Benages said. |
The suit asks the court to permanently enjoin the
defendants from future violations of ERISA, to prevent them from acting in
a fiduciary capacity with respect to any employee benefit plan covered by
ERISA; to remove the defendants as trustees of the plan and appoint an
independent fiduciary to administer the plan; to require the defendants to
fully cooperate with the independent fiduciary; and to order the
defendants to reimburse the plan for all losses incurred by the plan
because of their violations. |
This case was investigated by the EBSA’s Boston
regional office. Employers and workers can contact the regional office at
617.565.9600 or the agency’s toll-free number, 1.866.444.EBSA (3272),
for help with problems relating to private-sector pension, health plans
and other types of employee benefit plans. |
(Chao v. Ronald Coia, et al)
Civil Action No. 03-293-WS
|
U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7755. |