IRS Attacks CJA & CJA and Associates’ plans
Our tax resolution offices have been alerted that taxpayers are starting to be contacted by the IRS concerning plans in connection with CJA & CJA and Associates. If you are in any type of benefit plan, a plan having insurance, 419 plan, 412i, 412(e)(3), 419e, Welfare benefit plans, Prepare Plan, Titanium, Section 79, Captive Insurance or other CJA plan contact our office immediately for assistance.
For more information and additional articles on these subjects, visit www.vebaplan.com, or call 516-938-5007
UNITED STATES DISTRICT COURT
DISTRICT OF CONNECTICUT
U.S. TELEMANAGEMENT, INC.,
RONALD SCHEIBEL, individually
and on behalf of the U.S.
Telemanagement Inc. Defined
Benefit Plan and the U.S.
Telemanagement Inc. Welfare Benefit
Trust, S. KENESTON AND
ASSOCIATES, INC., and SCOTT
KENESTON, individually and
on behalf of the S. Keneston Defined
FIDELITY SECURITY LIFE
JULY 31, 2012
INSURANCE CO., CJA ASSOCIATES,
INC., FIRST ACTUARIAL
CORPORATION and THOMAS
Class Action Complaint
This is a class action brought by two small businesses that established
employee benefit plans and two plan participants in those plans. They sue under §§ 502
(a)(2) and (a)(3) of the Employee Retirement Income Security Act ("ERISA"), 29 U.S.C.
§§ 1132 (a)(2) and (a)(3), against the fiduciaries who gave them investment advice and
administered these plans.
Case 3:12-cv-01110 Document 1 Filed 08/01/12 Page 1 of 36
Defendant Fidelity Security Life Insurance Company (FSL) through its
agents defendants CJA Associates, Inc. (CJA) and Thomas Thorndike
(Thorndike)(collectively Defendants) used a pre-packaged program designed and
administered by CJA and defendant First Actuarial Corporation (FAC) to induce the
Plaintiffs and other similarly situated businesses to establish employee benefit programs
and invest plan trust assets in FSL annuities. Pre-packaged recommendations prepared
by CJA and delivered by Thorndike promised the Plaintiffs and others that investing
plan trust assets in these annuities would yield large tax breaks for the businesses and
secure large retirement benefits for plan participants.
The information provided herein is not intended as legal, accounting, financial or any type of advice for any specific individual or other entity. You should contact an appropriate professional for any such advice.