Compliance July 21, 2005

Fines Against Defunct Indiana MEWA Increased to $4.1M

July 21, 2005 (PLANSPONSOR.com) - Federal officials said Thursday that they have obtained a court order from an Indianapolis federal judge increasing the amount that executives of a defunct Indiana multiple employer welfare arrangement (MEWA) have to pay.
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A US Department of Labor (DoL) news release said the new court-ordered restitution amount is $4.1 million – up from the $3.4 million originally set in  a January 2005 ruling . The orders were aimed at William Crouse and Carmelo Zanfei of TRG Marketing LLC of Indianapolis. The difference between the two amounts was an additional $678, 817 in interest.

The latest court order also named Jeanne Barnes Bryant as an independent fiduciary to receive and place in trust money restored to the plan by Crouse and Zanfei. When terminated in 2001, the TRG plan had approximately 11,000 participants nationwide.

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Crouse and Zanfei were charged with illegally diverting health plan assets to pay for personal expenses for themselves and family members.  

The court found that the defendants used health premiums collected from employers to pay for commissions to TRG’s enrollment brokers, trips overseas, expensive glassware, personal expenses, charitable contributions, and a corporate line of credit.

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