Home Scam/Fraud Employee-benefits scammers are on the loose and leaving workers in the lurch

Employee-benefits scammers are on the loose and leaving workers in the lurch

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When the U.S. Department of Labor filed a lawsuit against a Chicago-area employee benefit fund early this year, it alleged a litany of improper loans, transfers of fund assets, and unreasonable compensation had siphoned more than $2.8 million from the plan since 2015. But there was far more to the story than what the Labor Department outlined in its complaint. 

The United Employee Benefit Fund, the fund targeted in the lawsuit, provides life insurance to about 63 employer-sponsored benefit plans nationwide, according to regulators. The Labor Department started investigating alleged mismanagement and inflated compensation at the fund more than 16 years ago, according to regulatory case summaries released in response to a Freedom of Information Act request by Georgetown University’s Center on Health Insurance Reforms. Some of the same players named in the complaint this year were scrutinized by the Labor Department for…

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