Archived News Release Caution: Information may be out of date.
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Release Date: 02/05/2004
Release Number: 04-106-CHI
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
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Cleveland, Ohio - The U.S. Department of Labor
has obtained a consent order and judgment requiring the trustee of the
health plan of Lake County, Ohio-based E & W Services, Inc., to repay
$31,336 directly to participants as restitution for failure to forward
employees’ premiums and payments for health benefit coverage. |
Trustee
John Chiappetta also will be barred permanently from serving any employee
benefit plan subject to the Employee Retirement Income Security Act (ERISA)
in the future. He also is majority owner and president of E & W
Services. |
The
department simultaneously sued Chiappetta for failing to forward insurance
premiums withheld from employees’ paychecks between January 5, 2001, and
May 4, 2001. The contributions were sporadically forwarded to the health
insurance provider, who applied the funds toward $65,000 in back premiums
incurred since November 2000. The insurer subsequently terminated coverage
in May 2001 because of delinquent premiums. Since the insurance policy was
retroactive to December 1, 2000, medical claims were not paid as of that
date. |
Joseph
Menez, director of the department’s Cincinnati regional office of the
Employee Benefits Security Administration (EBSA), which conducted the
investigation, said, “The law requires that those who administer
employee benefit plans do so in a prudent and honest manner solely for the
benefit of participants and their beneficiaries. It is unacceptable to
collect contributions from employees and not pay promised benefits.” |
In
fiscal year 2003, EBSA achieved record monetary results of $1.4 billion
related to the pension, 401(k), health and other benefits of millions of
American workers and their families. The case, investigated by the
Cincinnati office, was filed in federal district court in Cleveland.
Employers and workers can contact the office at 859.578.4680 or through
EBSA’s toll free number, 1.866.444.EBSA (3272), for help with any
problems relating to private-sector retirement and health plans. |
(Chao
v. John Chiappetta)
Civil Action No. 1:04-cv-00055-DAP |
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. |
Archived News Release Caution: Information may be out of date.
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