Federal court orders defunct Milwaukee information technologies organization, president to restore $18K withheld from personnel for healthcare strategy
Date of Action: March 7, 2023
Form of Action: Employee Retirement Revenue Safety Act default judgment
Enterprise/Owners: Gary Krieger, Stratagem Inc., Stratagem Inc. Group Health-related Insurance coverage Program
Background: On March 7, 2023, Judge Lynn Adelman in the U.S. District Court for the Eastern District of Wisconsin entered a default judgment against Stratagem Inc. and Gary Krieger, the company’s president, immediately after he failed to meet a deadline of Sept. 21, 2022, to answer a complaint filed by the U.S. Division of Labor.
The Secretary of Labor filed a lawsuit on March 21, 2022, immediately after the department’s Employee Rewards Safety Administration identified the organization and Krieger did not remit employees’ voluntary salary contributions to the company’s group insurance coverage strategy. The defunct information-technologies organization operated offices in Mequon and Milwaukee.
Resolution: Judge Adelman entered a default judgment in which Krieger, the organization and its group insurance coverage strategy need to restore $18,084 to the strategy inside 15 days. The quantity represents $15,124 in employee contributions not paid to the overall health strategy and $two,960 in lost chance charges for all Stratagem personnel who had voluntary contributions withheld from their spend from Oct. 14, 2018 via Jan. 15, 2019.
The judgment also forbids Krieger and the organization from future ERISA violations and bars them from serving as fiduciaries or service providers to any ERISA-covered employee advantage strategy in the future.
Employers and workers can attain EBSA toll-no cost at 866-444-3272 for enable with complications connected to private sector retirement and overall health plans. Study additional about EBSA.
Docket Quantity: Case No.:22-cv-353