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Law firm sued for representing alleged embezzlersMichelle Lovrine Honeyager Dec. 16, 2014, 10:23amA class-action lawsuit was filed against Montgomery McCracken Walker & Rhodes, LLP (MMWR) on Dec. 9 over claims that the law firm represented alleged trust fund embezzlers.The plaintiffs include: Dr. Harvey Kalan, the Harvey Kalan, M.D., Inc. Employee Welfare Benefit Plan, Dr. Pamela K. Erdman, the Dr. Pamela K. Erdman, M.D., Inc. Employee Welfare Benefit Plan, Gretchen Castellano, Drs. Martin and Elisa Zenni, and the M&E Zenni, Inc. Welfare Benefit Plan.John Koresko retained MMWR to represent him in multiple lawsuits pertaining to his operation of a employer welfare arrangement, REAL VEBA. Koresko and his companies were converting assets held by the REAL VEBA Trust and the Single Employer Welfare Benefit Plan Trust (SEWBPT). The trusts were meant to hold assets for the participants and their beneficiaries. Within days of MMWR agreeing to represent Koresko, the United State District Court for the Eastern District of Pennsylvania entered a partial summary judgment against Koresko, Jeanne Bonney and PennMont Benefit Services, Inc., ruling that they had transferred trust assets to non-trust accounts. MMWR did not withdraw its appearance on behalf of any of the parties and did not stop representing Koresko, his alleged co-conspirators or his companies.MMWR allegedly billed and accepted payments of $1.4 million from the trusts for the representation of Koresko and his alleged co-conspirators.The lawsuit was brought under the Employee Retirement Income Security Act of 1974 and seeks reimbursement of all fees received by MMWR to the trusts.
DOL Obtains Court Order Freezing 13 Bank Accounts of PennMont Benefit Services BRIDGEPORT, PA, July 17, 2013 -- The U.S. Department of Labor has obtained a court order freezing 13 bank and brokerage accounts allegedly containing assets of multiple employee welfare benefit plans administered by Bridgeport-based PennMont Benefit Services Inc. The accounts include bank accounts in the name of plan trustee Penn Public Trust, plan fiduciary John J. Koresko V and the Koresko Law Firm.The order issued by the U.S. District Court for the Eastern District of Pennsylvania, followed a July 8 hearing. At that hearing, the court heard arguments regarding the appropriate form of interim relief pending an evidentiary hearing that is currently scheduled for Aug. 12 on the department's Application for a Temporary Restraining Order and Preliminary Injunction. That application was aimed at preserving the assets of the welfare benefit plans sponsored by employers nationwide, and was filed in an ongoing lawsuit brought by the department in 2006 against PennMont, Penn Public Trust, John J. Koresko V, his law firm and other defendants. The 2006 complaint alleged violations of the Employee Retirement Income Security Act.According to the court's July 8 order, the department and private litigants established a substantial likelihood of success on the merits of their claim that the Koresko parties-- John J Koresko V, PennMont Benefit Services, Inc., Penn Public Trust, Koresko Law Firm PC, and Koresko and Associates PC -- breached their fiduciary obligations to the ERISA plans being administered by them. The court also found that the department and the private litigants have a substantial likelihood of showing that the Koresko parties engaged in a pattern of moving plan assets, in the form of death benefit and insurance policy loan proceeds, through at least 28 different bank accounts, held in the name of at least 19 different entities, at no fewer than four banks; commingled plan assets with other funds; and misappropriated funds from those commingled accounts for their own benefit.In addition, the court found that the department and private litigants have a substantial likelihood of showing that the Koresko parties used plan assets to pay Koresko and his law firm for services to the trust, and that Koresko, by acting as both the fiduciary and a service provider to the trust, who also appeared to set his own rates for his services, placed himself in the position of dual loyalties that ERISA prohibits. The district court had previously held that ERISA applied to certain employer-level plans that participated in the trust, and that the funds held in the trust were plan assets.The July 8 order freezes all funds in the 13 accounts until further order of the court, but authorizes PennMont and Penn Public Trust to pay premiums on life insurance policies out of one of the accounts.The department's lawsuit was filed by the Philadelphia Regional Solicitor's Office.Employers and workers can reach EBSA's Philadelphia office at 215-861-5300 or toll-free at 866-444-3272 for help with problems relating to private-sector retirement and health plans. Additional information can be found at www.dol.gov/ebsa.Harris v. Koresko Civil Action Number 2:09 -- cv-00988
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Participate in a 419 or 412i Plan or Other Abusive Tax Shelter You Could Be Fined $200000 Per YearFIND MORE LEGAL ARTICLESType any word(s)SEARCHDid you get a letter from the IRS threatening to impose this fine?If you haven’t already, you still may. Consider yourself lucky if you have not because this means that you have more time to straighten this situation out. Do not wait for this letter to come from the IRS before you call an expert to help you. Even if you have been audited already, you could still get the letter and/or fine. One has nothing to do with the other, and once the fine has been imposed, it is not able to be appealed. Many businesses that participated in a 412i retirement plan or the IRS is auditing a 419-welfare benefit plan. Many of these plans were not in compliance with the law and are considered abusive tax shelters. Many business owners are not even aware that the welfare benefit plan or retirement plan that they are participating in may be an abusive tax shelter and that they are in serious jeopardy of huge IRS penalties for each year that they have been in this type of plan. Insurance companies, CPAs, sellers of these 419 welfare benefit plans or 412i retirement plans, as well as anyone that gave tax advice or recommended participation in one or more of these plans, also known as a material advisor, is in danger of being sued, fined by the IRS, or both. There is help available if you think you may be involved with one of these 419 welfare benefit plans, 412i retirement plans, or any abusive tax shelter. IRS penalty abatement is an option if you act now.Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
Skip to main contentLinkedInBack to LinkedIn.com Lance Wallachjohn koresko real veba get all your money back from john hancock and other cos that sold the veba scamEdit articlePublished on July 14, 2017LikedUnlikejohn koresko real veba get all your money back from john hancock and other cos that sold the veba scam1Comment2ShareShare john koresko real veba get all your money back from john hancock and other cos that sold the veba scam3Lance WallachLance Wallach
—Disbarred attorney and embattled benefit plan promoter John J. Koresko was jailed for ignoring court orders requiring him to turn over $1.7 million and certain real property.The May 5 bench warrant follows a seven-year litigation effort by the Department of Labor, which seeks to hold Koresko and associated entities liable for mishandling millions of dollars held by the prototype welfare plans they sold to employers. After Koresko failed to show up at an April 26 contempt hearing, Judge Wendy Beetlestone issued a warrant for his arrest and scheduled a hearing for May 18.
HUGLER v. KORESKOEmail | Print | Comments (0)Civil Action No. 09-988.View Case Cited Cases Citing CaseEDWARD C. HUGLER, ACTING SECRETARY OF LABOR, UNITED STATES DEPARTMENT OF LABOR, v. JOHN J. KORESKO, V, et al.United States District Court, E.D. Pennsylvania.April 18, 2017.Editors NoteApplicable Law: 29 U.S.C. § 1001 Cause: 29 U.S.C. § 1001 E.R.I.S.A.: Employee Retirement Nature of Suit: 791 Labor: E.R.I.S.A.
Lance Wallach” “419 welfare benefit plans” “412i retirement plans” “412i” “tax shelter litigation” “abusive tax shelters” “fight tax shelter penalty” “Bankers Life” “Hartford Life” “CRESP” “American General Life” “Bisys” “Benistar” “United Financial Group” “Grist Mill Trust” “Ridge Plan” “SADI Trust” “Professional benefits Trust” “Sea Nine Veba” “Bisys” “Beta 419” “Beta Plan” “Millennium Plan” “Benistar” “Niche 419” “Grist Mill Trust” “Compass Welfare Benefit Plan” “Sterling Benefit Plan” “Penn Mont” “real Veba” “United Financial Group” “CRESP” “Pacific Life Insurance” “tax shelter litigation” “412i plan abuse” “419 plan abuse” “welfare benefit plan abuse" “Lance Wallach” “412i litigation” “419 litigation” “tax shelter litigation” “tax shelter litigation expert witness” “investment fraud litigation” “investment fraud litigation expert witness” “abusive retirement plans” “abusive welfare benefit plans”"lance wallach" “6707A” “captive insurance” “tax shelter fraud” “section 79”"tax letter" "irs letter" "irs letters" "irs determination letter" “419 plan help” 412i 6707a "form 8886" "listed transactions" "abusive tax shelter assistance" “insurance scam” “retirement plan fraud” “life insurance fraud” “life insurance scam” “health insurance scam” health insurance fraud” “tax shelter fraud” “tax shelter scam” "expert witness irs" veba "expert witness services" "Grist Mill Trust" Benistar "SADI Trust" "Beta 419" "Millennium Plan" Bisys "Creative Services Group" "Sterling Benefit Plan" "Compass 419" “Niche 419” CRESP "Sea Nine Veba" “419 plan” 412i 419e "expert witness insurance fraud" "welfare benefit plans" "419 plan help" "expert witness irs" “Lance Wallach” “419 plan help” “412i plan help” “tax resolution services” “irs problem solvers” “form 8886” 6707a “irs letter” “abusive tax shelters” “abusive tax shelter” “listed transactions” “listed transaction” “8886 help” “expert witness” “life insurance expert” “tax expert” “irs audit defense” “abusive tax shelter help” "tax letter" "irs letter" "irs letters" "irs determination letter" 419e 412i 6707A "form 8886" "listed transactions" veba "expert witness services" “abusive tax shelter help” Abusive Welfare Benefit and Retirement Plans Can Lead to Severe Penalties for AccountantsBy Lance WallachLance Wallach, 419 welfare benefit plans, 412i retirement plans, 412i, tax shelter litigation, abusive tax shelters, fight tax shelter penalty, Bankers Life, Hartford Life, CRESP, American General Life, Bisys, Benistar, United Financial Group, Grist Mill TrustAccountants who are unaware of recent developments are likely to encounter a nightmarish scenario that may play out something like this: you sign a client’s tax return that claims a tax deduction for participation in a “welfare benefit plan”. A few years pass, and nothing happens. Then, on audit, the deductions are disallowed and your client is hit with back taxes, penalties, and interest. He discovers that he may be looking at a large penalty for not disclosing his participation in the plan to the IRS.Naturally, at this point, your client wants out of the plan. But he discovers that he cannot get the money that he has contributed out of the plan. He finds that the money is being used by the plan sponsor to fight the IRS; his money is being used to defend a plan that he no longer wants to be
On July 23, 2013, the same date that the Court enjoined the Koresko Defendants2 in Perez v. Koresko, No. 09-cv-988 (Docket No. 436), from, among other things, taking any action that would reduce the value of the underlying policies, the Pennsylvania Debtors filed voluntary Chapter 11 bankruptcy petitions in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania.3 Each petition was signed by Mr. John J. Koresko in his capacity as "debtor." See, e.g., In re Single Employer Welfare Benefit Plan Trust, No. 13-bk-16441 (Docket No. 1).