IRS Attacks CJA & CJA and Associates’ plans


 

Lance Wallach

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.

www.taxaudit419.com

www.vebaplan.org

For more information and additional articles on these subjects, visit www.vebaplan.com, or call 516-938-5007



 http://lwallachcourtcase.blogspot.com/


UNITED STATES DISTRICT COURT

DISTRICT OF CONNECTICUT

U.S. TELEMANAGEMENT, INC.,

:

DOCKET NO.

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

Benefit Plan,

:

Plaintiffs,

:

v.

:

FIDELITY SECURITY LIFE

:

JULY 31, 2012

INSURANCE CO., CJA ASSOCIATES,

INC., FIRST ACTUARIAL

:

CORPORATION and THOMAS

THORNDIKE,

:

Defendants. :

Class Action Complaint


I.

Summary.

1.

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

2.

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.

 

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