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.
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.
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 |
