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EBSA News Release: [03/31/2004] Contact Name: Gloria Della Phone Number: (202) 693-8664
Labor Department
Resolves Lawsuit with Administrator of Maryland Health Plans
SILVER
SPRING, Md.—The
U. S. Department of Labor has obtained a consent judgment permanently barring
the president of SAI Plus in Rockville, Md., from serving as a fiduciary or
doing business with any employee benefit plan governed by federal benefits law.
“This
Administration is committed to aggressively enforcing the law and protecting
the health benefits promised to workers and their families,” said Secretary of
Labor Elaine L. Chao. “The Labor Department has a strong track record in
protecting the benefits promised to America’s workers, and we achieved record
monetary results last year totaling $1.4 billion for retirement, 401(k), health
and other programs.”
The
judgment, entered in federal district court in Greenbelt, Md., resolves a
lawsuit against Maruthi S. Manney for violating the Employee Retirement Income
Security Act. Manney allegedly failed
to collect sufficient contributions from employers to pay benefits provided by
the plans. He also failed to notify
employers that there was insufficient money to pay claims, to disclose to them
the amount of fees charged by SAI Plus for services to the plans, and retained
health plan assets in the firm’s account.
SAI
Plus marketed, sold, and administered self-funded health plans to 44 employer
groups across the country. The firm
ceased operating in June 2001 and has filed for Chapter 7 bankruptcy. The plans covered as many as 6,939
participants nationwide. Manney was a
fiduciary to the plans.
Employers
and workers can reach the Philadelphia regional office at (215) 861-5300, or
EBSA’s toll-free number, 1-866-444 (3272), for help with problems relating to
private-sector pension and health plans.
Tips
on health benefits for small employers may be found at EBSA’s web site under
“Small Business Health Education” at www.dol.gov/ebsa/Newsroom/ltrhealthinsurancetips.html.
Chao
v. Manney
Civil
Action No. 04-CV-0456
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Archived News Release Caution: Information may be out of date.
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