Attorney Patents 'Tax Scheme' To Target Insurance Giant By Marius Meland
Law360, New York (November 9, 2005, 12:00 AM ET) -- A Pennsylvania attorney patented a tax avoidance scheme through inequitable conduct, according to insurance provider Travelers Life and Annuity Co., which filed a preemptive lawsuit the same day the patent was granted. Travelers Life, a branch of MetLife Inc., sued John J. Koresko Tuesday, seeking declaratory judgment of non-infringement. Koresko had earlier “threatened” the insurance giant with a patent lawsuit, according to Travelers Life.
The suit against Koresko, a nationally-recognized tax attorney, was filed in the U.S. District Court for the Eastern District of Pennsylvania.
The parties are battling over a business method patent for using a loophole in Internal Revenue Service (IRS) code to reap large tax deductions. It essentially allows an IRS code for certain pensions to be used for non-pension plans – something that could reduce profit for insurance companies and revenue for the IRS.
Koresko describes the method as “revolutionary” and accuses Travelers Life of colluding with government to prevent the public from reaping the rewards, even as other insurance companies are seeking a license.
“We have evidence that Travelers Life’s experts were conspiring with the IRS to disparage the patent. The government doesn’t like [the invention] because it creates the largest pension deductions available,” Koresko told IP Law Bulletin.
Connecticut-based Travelers Life accused Koresko of delibera
U.S. Department of Labor | February 18, 2015 Investigation returns $39.8M to more than 400 benefit plans nationwide Judge orders restitution and bars-8339 (federal relay).
Investigation Returns $39.8M to More Than 400 Benefit Plans Nationwide Tavorro 116 Views
Facebook Twitter Google + Stumbleupon LinkedIn After nearly six years of litigation, a federal district court in Philadelphia recently entered a $39.8 million judgment, protecting the rights of workers who participated in more than 400 death benefit plans mismanaged by John J. Koresko V; companies he controlled; and a former associate, Jeanne Bonney. The defendants are permanently barred from serving as fiduciaries to any employee benefit plan and, with the exception of Bonney, must make restitution to the plans.
The decision follows a 2009 lawsuit filed by the U.S. Department of Labor. The judge ruled that Koresko of Bridgeport, Pennsylvania, and other defendants diverted tens of millions of dollars in plan assets through more than 21 accounts using more than 18 different entities at more than eight different banks. Spanning more than 12 years, the scheme saw assets from the plans’ trusts, used for real estate purchases in South Carolina and the Caribbean island of Nevis, to pay outside attorneys, lobbying expenses, operational expenses of Penn-Mont Benefit Services, Inc., and Koresko’s law firms, and for Koresko’s personal expenses, such as boat rentals and utilities. The misuses of assets violate the Employee Retirement Income Security Act.
“The defendants completely disregarded the duty of loyalty they owed to the employee benefit plans and the workers who rely on them,” said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi. “In an ideal world, this does not happen. When it does, there is justice in undoing this massive fraud, and in banning the defendants from coming anywhere near employee benefits again.”
The plans primarily provided death benefits to participants nationwide and were established in connection with Koresko’s Regional Employers’ Assurance Leagues Voluntary Employees’ Beneficiary Association and Single Employer Welfare Benefit Plan.
The court found that Koresko and the following defendants transferred plan assets out of the plans’ trusts, in violation of ERISA:
Penn-Mont Benefit Services, Inc., of Bridgeport, which is owned by Koresko; Koresko’s current and former law firms; Jeanne Bonney, an attorney formerly associated with the law firms; and Penn Public Trust, a company controlled by Koresko. Nearly $20 million of the amount due to the plans is frozen in accounts under the control of an independent fiduciary, after a July 2013 court order. Announced on Feb. 6, the decision found the defendants, with the exception of Bonney, liable for $19,852,114 in restitution for losses and disgorgement of profits, which represents the remaining balance of the total diverted assets.
The suit and all subsequent legal proceedings, including a June 2014 trial, resulted from an investigation by Jocelyn Diaz-Sweeting, Brannon Ottley, and Michael Horton in the Philadelphia Regional Office of the department’s Employee Benefits Security Administration. The case was litigated by Linda M. Henry, Ashton Phillips, and Joanne Roskey in the Philadelphia Regional Office of the Solicitor.
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. In FY 2014, EBSA recovered $599.7 million for direct payment to employee benefit plans, participants and beneficiaries. Additional information can be found at www.dol.gov/ebsa.
Perez v. Koresko, et. al Civil Action No.: 2:09-cv-00988-MAM
Investigation Returns $39.8M to More Than 400 Benefit Plans Nationwide Tavorro 116 Views
Facebook Twitter Google + Stumbleupon LinkedIn After nearly six years of litigation, a federal district court in Philadelphia recently entered a $39.8 million judgment, protecting the rights of workers who participated in more than 400 death benefit plans mismanaged by John J. Koresko V; companies he controlled; and a former associate, Jeanne Bonney. The defendants are permanently barred from serving as fiduciaries to any employee benefit plan and, with the exception of Bonney, must make restitution to the plans.
The decision follows a 2009 lawsuit filed by the U.S. Department of Labor. The judge ruled that Koresko of Bridgeport, Pennsylvania, and other defendants diverted tens of millions of dollars in plan assets through more than 21 accounts using more than 18 different entities at more than eight different banks. Spanning more than 12 years, the scheme saw assets from the plans’ trusts, used for real estate purchases in South Carolina and the Caribbean island of Nevis, to pay outside attorneys, lobbying expenses, operational expenses of Penn-Mont Benefit Services, Inc., and Koresko’s law firms, and for Koresko’s personal expenses, such as boat rentals and utilities. The misuses of assets violate the Employee Retirement Income Security Act.
“The defendants completely disregarded the duty of loyalty they owed to the employee benefit plans and the workers who rely on them,” said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi. “In an ideal world, this does not happen. When it does, there is justice in undoing this massive fraud, and in banning the defendants from coming anywhere near employee benefits again.”
The plans primarily provided death benefits to participants nationwide and were established in connection with Koresko’s Regional Employers’ Assurance Leagues Voluntary Employees’ Beneficiary Association and Single Employer Welfare Benefit Plan.
The court found that Koresko and the following defendants transferred plan assets out of the plans’ trusts, in violation of ERISA:
Penn-Mont Benefit Services, Inc., of Bridgeport, which is owned by Koresko; Koresko’s current and former law firms; Jeanne Bonney, an attorney formerly associated with the law firms; and Penn Public Trust, a company controlled by Koresko. Nearly $20 million of the amount due to the plans is frozen in accounts under the control of an independent fiduciary, after a July 2013 court order. Announced on Feb. 6, the decision found the defendants, with the exception of Bonney, liable for $19,852,114 in restitution for losses and disgorgement of profits, which represents the remaining balance of the total diverted assets.
The suit and all subsequent legal proceedings, including a June 2014 trial, resulted from an investigation by Jocelyn Diaz-Sweeting, Brannon Ottley, and Michael Horton in the Philadelphia Regional Office of the department’s Employee Benefits Security Administration. The case was litigated by Linda M. Henry, Ashton Phillips, and Joanne Roskey in the Philadelphia Regional Office of the Solicitor.
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. In FY 2014, EBSA recovered $599.7 million for direct payment to employee benefit plans, participants and beneficiaries. Additional information can be found at www.dol.gov/ebsa.
Perez v. Koresko, et. al Civil Action No.: 2:09-cv-00988-MAM
None of us are getting out of here alive, so please stop treating yourself as an afterthought. Eat the delicious food. Walk in the sunshine. Jump in the ocean. Say the truth that you’ve been carrying in your heart like hidden treasure. Be silly. Be kind. Be weird. There’s no time for anything else.
Attorney Patents 'Tax Scheme' To Target Insurance Giant
ReplyDeleteBy Marius Meland
Law360, New York (November 9, 2005, 12:00 AM ET) -- A Pennsylvania attorney patented a tax avoidance scheme through inequitable conduct, according to insurance provider Travelers Life and Annuity Co., which filed a preemptive lawsuit the same day the patent was granted.
Travelers Life, a branch of MetLife Inc., sued John J. Koresko Tuesday, seeking declaratory judgment of non-infringement. Koresko had earlier “threatened” the insurance giant with a patent lawsuit, according to Travelers Life.
The suit against Koresko, a nationally-recognized tax attorney, was filed in the U.S. District Court for the Eastern District of Pennsylvania.
The parties are battling over a business method patent for using a loophole in Internal Revenue Service (IRS) code to reap large tax deductions. It essentially allows an IRS code for certain pensions to be used for non-pension plans – something that could reduce profit for insurance companies and revenue for the IRS.
Koresko describes the method as “revolutionary” and accuses Travelers Life of colluding with government to prevent the public from reaping the rewards, even as other insurance companies are seeking a license.
“We have evidence that Travelers Life’s experts were conspiring with the IRS to disparage the patent. The government doesn’t like [the invention] because it creates the largest pension deductions available,” Koresko told IP Law Bulletin.
Connecticut-based Travelers Life accused Koresko of delibera
U.S. Department of Labor | February 18, 2015
ReplyDeleteInvestigation returns $39.8M to more than 400 benefit plans nationwide
Judge orders restitution and bars-8339 (federal relay).
Investigation Returns $39.8M to More Than 400 Benefit Plans Nationwide
ReplyDeleteTavorro 116 Views
Facebook Twitter Google + Stumbleupon LinkedIn
After nearly six years of litigation, a federal district court in Philadelphia recently entered a $39.8 million judgment, protecting the rights of workers who participated in more than 400 death benefit plans mismanaged by John J. Koresko V; companies he controlled; and a former associate, Jeanne Bonney. The defendants are permanently barred from serving as fiduciaries to any employee benefit plan and, with the exception of Bonney, must make restitution to the plans.
The decision follows a 2009 lawsuit filed by the U.S. Department of Labor. The judge ruled that Koresko of Bridgeport, Pennsylvania, and other defendants diverted tens of millions of dollars in plan assets through more than 21 accounts using more than 18 different entities at more than eight different banks. Spanning more than 12 years, the scheme saw assets from the plans’ trusts, used for real estate purchases in South Carolina and the Caribbean island of Nevis, to pay outside attorneys, lobbying expenses, operational expenses of Penn-Mont Benefit Services, Inc., and Koresko’s law firms, and for Koresko’s personal expenses, such as boat rentals and utilities. The misuses of assets violate the Employee Retirement Income Security Act.
“The defendants completely disregarded the duty of loyalty they owed to the employee benefit plans and the workers who rely on them,” said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi. “In an ideal world, this does not happen. When it does, there is justice in undoing this massive fraud, and in banning the defendants from coming anywhere near employee benefits again.”
The plans primarily provided death benefits to participants nationwide and were established in connection with Koresko’s Regional Employers’ Assurance Leagues Voluntary Employees’ Beneficiary Association and Single Employer Welfare Benefit Plan.
The court found that Koresko and the following defendants transferred plan assets out of the plans’ trusts, in violation of ERISA:
Penn-Mont Benefit Services, Inc., of Bridgeport, which is owned by Koresko;
Koresko’s current and former law firms;
Jeanne Bonney, an attorney formerly associated with the law firms; and
Penn Public Trust, a company controlled by Koresko.
Nearly $20 million of the amount due to the plans is frozen in accounts under the control of an independent fiduciary, after a July 2013 court order. Announced on Feb. 6, the decision found the defendants, with the exception of Bonney, liable for $19,852,114 in restitution for losses and disgorgement of profits, which represents the remaining balance of the total diverted assets.
The suit and all subsequent legal proceedings, including a June 2014 trial, resulted from an investigation by Jocelyn Diaz-Sweeting, Brannon Ottley, and Michael Horton in the Philadelphia Regional Office of the department’s Employee Benefits Security Administration. The case was litigated by Linda M. Henry, Ashton Phillips, and Joanne Roskey in the Philadelphia Regional Office of the Solicitor.
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. In FY 2014, EBSA recovered $599.7 million for direct payment to employee benefit plans, participants and beneficiaries. Additional information can be found at www.dol.gov/ebsa.
Perez v. Koresko, et. al
Civil Action No.: 2:09-cv-00988-MAM
Investigation Returns $39.8M to More Than 400 Benefit Plans Nationwide
ReplyDeleteTavorro 116 Views
Facebook Twitter Google + Stumbleupon LinkedIn
After nearly six years of litigation, a federal district court in Philadelphia recently entered a $39.8 million judgment, protecting the rights of workers who participated in more than 400 death benefit plans mismanaged by John J. Koresko V; companies he controlled; and a former associate, Jeanne Bonney. The defendants are permanently barred from serving as fiduciaries to any employee benefit plan and, with the exception of Bonney, must make restitution to the plans.
The decision follows a 2009 lawsuit filed by the U.S. Department of Labor. The judge ruled that Koresko of Bridgeport, Pennsylvania, and other defendants diverted tens of millions of dollars in plan assets through more than 21 accounts using more than 18 different entities at more than eight different banks. Spanning more than 12 years, the scheme saw assets from the plans’ trusts, used for real estate purchases in South Carolina and the Caribbean island of Nevis, to pay outside attorneys, lobbying expenses, operational expenses of Penn-Mont Benefit Services, Inc., and Koresko’s law firms, and for Koresko’s personal expenses, such as boat rentals and utilities. The misuses of assets violate the Employee Retirement Income Security Act.
“The defendants completely disregarded the duty of loyalty they owed to the employee benefit plans and the workers who rely on them,” said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi. “In an ideal world, this does not happen. When it does, there is justice in undoing this massive fraud, and in banning the defendants from coming anywhere near employee benefits again.”
The plans primarily provided death benefits to participants nationwide and were established in connection with Koresko’s Regional Employers’ Assurance Leagues Voluntary Employees’ Beneficiary Association and Single Employer Welfare Benefit Plan.
The court found that Koresko and the following defendants transferred plan assets out of the plans’ trusts, in violation of ERISA:
Penn-Mont Benefit Services, Inc., of Bridgeport, which is owned by Koresko;
Koresko’s current and former law firms;
Jeanne Bonney, an attorney formerly associated with the law firms; and
Penn Public Trust, a company controlled by Koresko.
Nearly $20 million of the amount due to the plans is frozen in accounts under the control of an independent fiduciary, after a July 2013 court order. Announced on Feb. 6, the decision found the defendants, with the exception of Bonney, liable for $19,852,114 in restitution for losses and disgorgement of profits, which represents the remaining balance of the total diverted assets.
The suit and all subsequent legal proceedings, including a June 2014 trial, resulted from an investigation by Jocelyn Diaz-Sweeting, Brannon Ottley, and Michael Horton in the Philadelphia Regional Office of the department’s Employee Benefits Security Administration. The case was litigated by Linda M. Henry, Ashton Phillips, and Joanne Roskey in the Philadelphia Regional Office of the Solicitor.
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. In FY 2014, EBSA recovered $599.7 million for direct payment to employee benefit plans, participants and beneficiaries. Additional information can be found at www.dol.gov/ebsa.
Perez v. Koresko, et. al
Civil Action No.: 2:09-cv-00988-MAM
The IRS is Looking for You...
ReplyDeleteDid You Participate in a Sea Nine VEBA plan? Contact Lance Wallach
None of us are getting out of here alive, so please stop treating yourself as an afterthought. Eat the delicious food. Walk in the sunshine. Jump in the ocean. Say the truth that you’ve been carrying in your heart like hidden treasure. Be silly. Be kind. Be weird. There’s no time for anything else.
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