Protect Your Employee Benefit Plans from Costly Risks!
A Maryland-based CEO of a company that provided administrative services to federal contractors for managing employee benefit contributions has been charged with embezzling over $2.4 million from an Employee Retirement Income Security Act (ERISA) benefit plan, according to the U.S. Department of Justice.
According to the DOJ, the accused allegedly diverted a portion of the funds meant for employee health and retirement benefits to a master trust account under his control. From 2015 to 2024, the 47-year-old CEO is accused of making 135 unauthorized withdrawals. The money was reportedly used to cover personal expenses, including luxury hunting trips, jewelry, gambling, and direct payments to his girlfriend.
Click here to read the full press release.
ERISA benefit plan fiduciaries who select third-party service providers could face scrutiny for their selection and oversight decisions. Fiduciary Liability coverage under a Management Liability Policy is designed to protect benefit plan fiduciaries against claims alleging breaches of their responsibilities, which may include the selection and oversight of third-party service providers. In today’s environment, where mismanagement can result in significant financial and legal exposure, having the right coverage in place is not just smart, it’s essential.
Don’t wait until it’s too late – make sure you’re covered today!
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| Northeast Region Seth Jainchill 860-466-7363 sjainchill@berkleyfs.com | Southeast Region Nick Zacchio 860-466-7190 [email protected] |
| Central Region Mike Saccone 303-408-9599 [email protected] | West Region Pete Verretto 206-802-3076 [email protected] |
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