Perez v. Koresko

Decision Date06 February 2015
Docket NumberCivil Action No. 09–988.
Citation86 F.Supp.3d 293
PartiesThomas E. PEREZ, Secretary of Labor, United States Department of Labor v. John J. KORESKO, V, et al.
CourtU.S. District Court — Eastern District of Pennsylvania

86 F.Supp.3d 293

Thomas E. PEREZ, Secretary of Labor, United States Department of Labor
v.
John J. KORESKO, V, et al.

Civil Action No. 09–988.

United States District Court, E.D. Pennsylvania.

Filed Feb. 6, 2015.


86 F.Supp.3d 297

Linda M. Henry, Andrea J. Appel, Ashton S. Phillips, Joanne Roskey, U.S. Department of Labor, Region III, Philadelphia, PA, for Thomas E. Perez, Secretary of Labor, United States Department of Labor.

John J. Koresko, V, Bridgeport, PA, pro se.

86 F.Supp.3d 298

Lawrence G. McMichael, Dilworth Paxson LLP, Philadelphia, PA, for John J. Koresko, V, et al.

Jeanne Bonney, Norristown, PA, pro se.

Penn–Mont Benefit Services, Inc., Bridgeport, PA, pro se.

Koresko & Associates, P.C., Bridgeport, PA, pro se.

Koresko Law Firm, P.C., Bridgeport, PA, pro se.

Penn Public Trust, Bridgeport, PA, pro se.

Single Employer Welfare Benefit Plan Trust, Montgomery County, PA, pro se.

MEMORANDUM

McLAUGHLIN, District Judge.

TABLE OF CONTENTS
I. Procedural History 300
A. Administrative Enforcement Proceedings 300
B. Initial Complaint 301
C. Motion for Summary Judgment 302
D. Supplemental Complaint 303
E. Motion for Temporary Restraining Order and Preliminary Injunction 304
F. September 16 Hearing and Appointment of the Independent Fiduciary 307
G. Discovery and Contempt Proceedings 307
H. IF Reports 310
I. Jeanne Bonney 310
J. Pretrial Proceedings 311
K. Trial 312
L. Post–Trial 312
II. Findings of Fact 314
A. The Defendants and Their Relationships to One Another 314
B. The Trustees and the Plan Administrator 315
C. Participating Employers in the REAL VEBA or SEWBP Trust 316
D. Transfers from the Trust 338
E. Establishment of “Death Benefit” Accounts 344
F. Depositing Death Benefit Proceeds into KLF's Account 345
G. Transfer of Death Benefit Proceeds into a Second Account 346
H. Transfer of Death Benefit Proceeds to Nevis and to KLF 346
I. Loans on Insurance Policies 348
J. Transfer of Loan Proceeds into Mr. Koresko's Escrow Account 349
K. Transfer of Death Benefit and Loan Proceeds to an IOLTA Account 350
L. Transfer of Funds to Nevis 351
M. Transfer of Death Benefit and Loan Proceeds to the Pershing Account 355
N. The Creation and Use of the 1187 Account 356
O. Deposit of Plan Assets into the 1195 Account and the Subsequent Transfer of Those Assets 359
P. The Creation and Use of the 1146 Account 361
Q. The Creation and Use of the 1112 Account 362
R. The Creation and Use of the Penn Public Trust, Inc., SPC, Account 364
S. The Creation and Use of an Account in the Name of CTC, the Former Trustee 365
T. Depositing of Plan Assets into a Separate Account After the Court's Freeze Orders and After the Installation of the IF 367
U. Transfer of Moneys from Employers to the 8384 Account 369
V. Depositing of Plan Assets into Yet Another Account, After the Court Instructed to Return Loan Proceeds 370
W. Total Amount of Diverted Plan Assets at Issue 371
III. Conclusions of Law 372
A. ERISA Coverage 372
B. Fiduciary Status 376
C. ERISA Fiduciary Duties
...

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28 cases
  • Koresko v. United States, Civil Action No. 13–4131
    • United States
    • U.S. District Court — Eastern District of Pennsylvania
    • 19 Agosto 2015
    ... ... Judge McLaughlin handled that litigation, held a bench trial, and made several findings of fact about how the REAL VEBA was structured. See Solis v. Koresko, et al. , 884 F.Supp.2d 261 (E.D.Pa.2012) (granting partial summary judgment in favor of the Department of Labor); Perez v. Koresko, et al., 86 F.Supp.3d 293, No. 09988, 2015 WL 505471 (E.D.Pa. Feb. 6, 2015) (judgment post bench trial in favor of DOL), judgment amended, 2015 WL 2236692 (E.D.Pa. May 13, 2015) (altering judgment award). The issues in this case overlap with those in Judge McLaughlin's case. The ... ...
  • Hausknecht v. John Hancock Life Insurance Company of New York
    • United States
    • U.S. District Court — Eastern District of Pennsylvania
    • 14 Julio 2022
    ... ... life insurance policies which were devalued through a larger, complex scheme to swindle funds from welfare benefit plans operated by one John Koresko. Defendant countersued for breach of an indemnification contract, which contract was between Plaintiff CMCS and Defendant's predecessor by merger, ... Koresko , 884 F. Supp.2d 261 (E.D. Pa. 2012), aff'd sub nom. Sec'y of U.S. Dep't Labor v. Koresko , 646 F. App'x 230 (3d Cir. 2016) ; Perez v. Koresko , 86 F. Supp.3d 293 (E.D. Pa. 2015), aff'd sub nom. Sec'y of Labor , 646 F. App'x 230. Although neither the Plaintiffs nor the ... ...
  • Aric D. Hausknecht, Complete Med. Care Servs. of Ny, PC v. John Hancock Life Ins. Co. of N.Y.
    • United States
    • U.S. District Court — Eastern District of Pennsylvania
    • 13 Agosto 2018
    ... ... MEMORANDUM OPINION Wendy Beetlestone, District Judge After the Department of Labor sued John Koresko for converting the assets of welfare benefit plans, see Perez v. Koresko , 86 F.Supp.3d 293 (E.D. Pa. 2015), aff'd , 646 F. App'x. 230 (3d Cir ... ...
  • Corman v. Nationwide Life Ins. Co., CIVIL ACTION NO. 17-3912
    • United States
    • U.S. District Court — Eastern District of Pennsylvania
    • 11 Julio 2019
    ... ... Gosselin, Drinker Biddle & Reath LLP, Philadelphia, PA, for Defendant. MEMORANDUM OPINION WENDY BEETLESTONE, District Judge John Koresko was the mastermind behind a large-scale endeavor to convert welfare benefit funds to his own use, which has spawned years of litigation. See ly Perez v. Koresko , 86 F. Supp.3d 293 (E.D. Pa. 2015) ; Solis v. Koresko , 884 F. Supp.2d 261 (E.D. Pa. 2012), aff'd , 646 F. App'x 230 (3d Cir. 2016) ... ...
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