Delaware ERISA Lawyer

ERISA Law Firm Handling Fraud and Breach of Duty Investigations in Delaware

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The Employee Retirement Income Security Act (ERISA) is a federal statute that governs employer-sponsored retirement plans in the United States, including pension plans and 401(k) plans, as well as disability benefit plans and other employee benefit plans. Along with establishing requirements for managing these plans, ERISA also establishes both civil and criminal penalties for noncompliance.

Our ERISA attorneys represent business owners, corporate executives, plan fiduciaries, plan sponsors, and other individuals accused of violating the statute’s requirements and prohibitions. We handle fraud claims, fiduciary duty claims, and other types of civil and criminal litigation focused on statutory compliance. We represent clients accused of engaging in prohibited transactions as well, and our ERISA attorneys also handle plan-related tax matters involving the Internal Revenue Service (IRS) and U.S. Department of Justice (DOJ).

Defense Counsel for All Types of ERISA Enforcement Matters in Delaware

Within our ERISA defense practice, we defend a wide range of clients in ERISA-related matters across Delaware, from Wilmington to Georgetown. We provide comprehensive legal services for both corporations and individuals, from evaluating compliance to defending against civil and criminal enforcement actions in federal court. Our attorneys handle ERISA cases including (but not limited to) those involving:

• Disability benefit plans
• Employee pension plans
• Employee retirement plans (including 401(k) plans)
• Health and welfare plans
• Multiemployer retirement plans (MEPs)

Employers that offer these plans have strict obligations to manage their plans in their employees’ best interests. Plan sponsors have reporting and other transparency obligations as well. Failing to meet any of these obligations can present substantial risks, and employers (and individuals) that are facing allegations of noncompliance should promptly engage experienced counsel to assess their legal options.

Common Allegations in ERISA Enforcement Matters

Corporate entities and individuals targeted in ERISA enforcement matters can face a wide range of allegations. In all cases, promptly identifying the specific allegations at issue is critical for building a strategic defense. Some examples of common allegations in these cases include:

• Altering Participant Account Information, Forgery, and Identity Theft – Plan fiduciaries, plan managers, and others who alter participants’ account information or use their account information for unlawful purposes can face substantial penalties.
• Diversion of Participants’ Funds or Entitled Contributions – Diverting plan participants’ funds or entitled contributions carries substantial penalties as well.
• Embezzlement, Conversion, and Theft – Along with diversion of participants’ funds or contributions, embezzlement, conversion, and theft are also federal criminal offenses that pose substantial risks.
• Excluding “High-Risk” Employees from Self-Funded Health Benefit Plans – Excluding “high-risk” employees is classified as a form of ERISA fraud, and it can lead to civil or criminal liability depending on the specific allegations involved.
• Fraud Targeting Plan Participants – Allegations of fraud targeting plan participants can raise a host of potential issues and risks. We have extensive experience fighting all types of fraud allegations on behalf of our clients.
• Fraudulent ERISA Audits – ERISA imposes stringent audit requirements. Misrepresenting or concealing information during the audit process can also trigger civil or criminal enforcement depending on the circumstances involved.
• Making Materially False Statements in ERISA-Required Documentation – Requiring employers to provide complete and accurate plan documents is one way that ERISA seeks to ensure compliance and protect plan participants. As a result, making materially false statements in ERISA-required documentation can also lead to high-stakes enforcement action.
• Receiving Unauthorized Benefits – Similar to diversion of participants’ funds or contributions, receiving unauthorized benefits is also strictly prohibited (and potentially subject to criminal prosecution) under ERISA.
• Tax Evasion and Tax Fraud – Tax evasion and tax fraud are related issues that can also lead to high-stakes civil or criminal enforcement action in ERISA fraud investigations.
• Wire Fraud and Money Laundering – In criminal enforcement cases, the DOJ will frequently pursue charges for wire fraud, money laundering, and other federal crimes as well.

Again, these are just examples. ERISA and its enabling regulations are extremely complex, and plan sponsors (and other entities and individuals) have extensive compliance obligations. As a result, a wide range of issues can lead to federal scrutiny, and whether this scrutiny is civil or criminal in nature depends on the financial impact, evidence of intent (if any), and various other factors.

Examples of Potential Criminal Charges in ERISA Enforcement Matters

Increasingly, we are seeing the DOJ pursue criminal charges against both companies and individuals in ERISA enforcement matters. Potential criminal charges in these cases include:

• ERISA Section 411 – Section 411 of ERISA makes it a federal criminal offense to serve as a fiduciary or service provider to a pension or 401(k) plan after being convicted of theft, embezzlement, extortion, bribery, or certain other federal crimes.
• ERISA Section 501 – Section 501 of ERISA makes it a federal crime to willfully violate the statute’s reporting or disclosure requirements pertaining to pensions and 401(k) plans.
• ERISA Section 511 – Section 511 of ERISA makes it a federal crime to engage in “coercive interference” with respect to a pension or 401(k) plan participant’s rights under the plan.
• 18 U.S.C. Section 371 – This statute imposes criminal penalties for any entity or individual involved in a conspiracy to commit fraud under ERISA or any other federal statute (including the Internal Revenue Code).
• 18 U.S.C. Section 664 – This statute imposes criminal penalties for theft or embezzlement from a pension or 401(k) plan covered by ERISA.
• 18 U.S.C. Section 1027 – This statute imposes criminal penalties for making false statements or concealing facts in relation to ERISA-required documentation relevant to a pension or 401(k) plan.
• 18 U.S.C. Section 1343 – This statute imposes criminal penalties for wire fraud committed in connection with a violation of ERISA or any other federal law.
• 18 U.S.C. Section 1349 – This statute imposes criminal penalties for attempting to commit any other federal offense related to a benefit plan or retirement plan covered under ERISA.
• 18 U.S.C. Section 1954 – This statute imposes criminal penalties for offering, providing, accepting, or soliciting unlawful influence over the management of an ERISA-covered pension or 401(k) plan.
• 18 U.S.C. Section 1956 – This statute imposes criminal penalties for money laundering involving funds converted, diverted, or embezzled from an ERISA-covered plan or from plan participants.

Here too, these are just examples. However, prosecution under any of these statutes can expose corporate defendants to substantial fines, and individuals charged under these statutes can face both fines and federal imprisonment. As a result, regardless of the specific allegations at hand, it is imperative that targeted entities and individuals engage an experienced ERISA attorney as soon as possible.

FAQs: Defending Against Allegations of Employee Benefits Fraud Under ERISA

Schedule a Free Consultation with a Delaware ERISA Lawyer at Oberheiden P.C.

If you need to speak with an ERISA lawyer about an investigation or enforcement action in Delaware, we strongly encourage you to contact us right away. To speak with one of our senior ERISA lawyers in confidence as soon as possible, call 888-680-1745 or tell us how we can reach you online now.

Further Information About Our ERISA Lawyer Services

• ERISA Defense Attorney
• New Jersey ERISA Lawyer
• New York ERISA Lawyer
• Pennsylvania ERISA Lawyer