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Release Date: March 7, 2006
Release Number: 06-373-PHI (EBSA 020)
Contact Name: Kate Dugan
Phone Number: 215.861.5101

Judge Orders Imprisonment of Philadelphia Businessman For Failure to Produce Documents

Philadelphia, Pennsylvania - A federal district court in Philadelphia has granted a motion by the U.S. Department of Labor to incarcerate John J. Koresko of Bridgeport, Pennsylvania, for failing to produce documents requested by administrative subpoenas.

The subpoenas were issued to Koresko and his businesses -- Koresko & Associates and Penn-Mont Benefit Services Inc. Koresko is ordered to surrender himself to the Office of the United States Marshal on or before 2 p.m. March 10, 2006.

Koresko can comply with the court’s order or will be taken into custody and confined until he produces the documents sought by the department’s Employee Benefits Security Administration (EBSA). The agency is seeking documents related to a death benefit plan marketed to businesses throughout the country under two separate names -- Regional Employers’ Assurance Leagues (REAL) Voluntary Employees’ Beneficiary Association Health and Welfare Benefit Plan and Delaware Valley Leagues (DVL) Voluntary Employees’ Beneficiary Association Health and Welfare Benefit Plan.

“This court action should serve as a warning to any person who considers not cooperating with a federal investigation,” said Mabel Capolongo, director of EBSA’s Philadelphia regional office. “Our investigation is ongoing and we encourage anyone with information about these plans to contact the Philadelphia regional office at 215.861.5300.”

The motion was granted February 24. The defendants have been paying a fine of $250 per day for the past year.

In fiscal year 2005, EBSA achieved record monetary results of $1.7 billion related to pension, 401(k), health and other benefits for millions of American workers and their families. Employers and workers can contact the regional office at 215.861.5300 or call EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector pension and health plans.

Chao v. Koresko
Civil Action: 04-mc-74

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