The U. S. Department of Labor has reportedly 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 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.
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