Perez v. Koresko
| Decision Date | 06 February 2015 |
| Docket Number | Civil Action No. 09–988. |
| Citation | 86 F.Supp.3d 293 |
| Parties | Thomas E. PEREZ, Secretary of Labor, United States Department of Labor v. John J. KORESKO, V, et al. |
| Court | U.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
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Koresko v. United States, Civil Action No. 13–4131
... ... 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 ... ...
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Hausknecht v. John Hancock Life Insurance Company of New York
... ... 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 ... ...
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Aric D. Hausknecht, Complete Med. Care Servs. of Ny, PC v. John Hancock Life Ins. Co. of N.Y.
... ... 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 ... ...
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Corman v. Nationwide Life Ins. Co., CIVIL ACTION NO. 17-3912
... ... 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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