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Release Date: 10/08/2003
Release No.: III-03-10-08-150-PA/NJ
Contact Name: Rita Ford
Phone Number: 202.693.8671
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Central Islip, New York - Former administrators
of the International Brotherhood of Industrial Workers’ Health and
Welfare Fund of Central Islip, New York, are permanently barred from
serving plans governed by federal employee benefits law, according to a
court decision announced today by the U.S. Department of Labor. The
decision also appoints an independent fiduciary to terminate the fund,
resolve participant claims and distribute plan assets. |
"Individuals
entrusted with the assets of employee benefit plans have a serious
responsibility, and this Administration will take action to protect
workers, as in this case, the International Brotherhood of Industrial
Workers', whose funds have been mismanaged," said Labor Secretary
Elaine L. Chao. "The Department of Labor will vigorously pursue
violations to restore plan assets and to safeguard the health benefits of
workers and their families." |
The
decision, entered in federal district court in Central Islip, New York, on
August 21, resolves a lawsuit against Joseph Merino and Sandra Briand for
violating the Employee Retirement Income Security Act (ERISA). |
The
defendants allegedly hired Clarke Lasky as an employer representative to
manage the BIW fund -- despite knowledge of his conviction for embezzling
money from another employee benefit plan -- and extended credit to him so
he could continue to administer the fund after he failed to remit employee
contributions. Lasky, who was charged with embezzling health benefit
funds, pled guilty in January 1998. He was subsequently sentenced to 27
months in prison. |
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BIW fund's trustees Donald Gancio and Helen Williams
previously agreed to consent agreements permanently barring them from
serving as fiduciaries or service providers to any employee benefit plan
governed by federal employee benefits law. The settlement agreement
provides for the immediate entry of a judgment for $352, 271 against
Gancio. |
The
BIW fund was established under a collective bargaining agreement with the
International Brotherhood of Industrial Workers’ local unions 119 and
835, sanitation workers, and employers. From 1972-1994, the fund provided
accident, health care, dental and visual benefits to approximately 1,000
employees in Arizona, Florida, New Jersey, New York and Pennsylvania. The
BIW union formally ceased operations in May 1996. |
The
case was investigated by Employee Benefit Security Administration’s
regional office in New York. Employers and workers can reach 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. |
(Chao
v. Joseph Merino)
Civil Action No. CV 98-2041 [ARL] |
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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. |
