412i and 419e plans litigation and IRS Audit Experts for abusive insurance based plans deemed reportable or listed transactions by the IRS.
Suit Says Philly Firm Billed Trusts To Rep ScammerBy Dan PackelLaw360, Philadelphia (December 10, 2014, 5:46 PM ET) -- Montgomery McCracken Walker & Rhoads LLP was hit Wednesday in Pennsylvania federal court with a proposed class action brought by benefit plan beneficiaries who say they were defrauded and claim that the firm billed trusts that held plan assets in order to represent an embezzler of funds. The plaintiffs, who include members of two employee benefit plans as well as the plans themselves, say that plan originator John Koresko used assets from the plans for his personal benefits and that the Philadelphia-based firm was aware of his self-dealing when it represented him in a suit brought by the Department of Labor. They said this knowledge did not stop the firm from claiming to represent the trusts and billing them a total of $1.4 million for Koresko’s defense.“MMWR went so far as to advocate Koresko’s frivolous claim to millions more of the trusts’ assets and, still while representing and being paid by the trusts, insisted that any settlement with DOL include substantial transfers of the trusts’ assets to Koresko et al,” they said in the complaint.Koresko retained the firm in response to a 2012 DOL lawsuit that contended that he and companies he controlled were siphoning assets held by two trusts, the REAL VEBA Trust and the Single Employer Welfare Benefit Plan Trust, according to the complaint. According to court documents, Montgomery McCracken partner Karen Ibach represented Koresko, but she was not named in the instant complaint.Koresko and his brother, Lawrence, allegedly established a set of interrelated companies and then created an arrangement that allowed owner/employees of