# Perez v. Koresko

> District Court, E.D. Pennsylvania · February 6, 2015 · 86 F. Supp. 3d 293

URL: https://www.frixlaw.com/law-library/cases/7229863

## Case

- **Full name:** Thomas E. PEREZ, Secretary of Labor, United States Department of Labor v. John J. KORESKO, V
- **Court:** District Court, E.D. Pennsylvania
- **Decided:** February 6, 2015
- **Citations:** 86 F. Supp. 3d 293; 2014 U.S. Dist. LEXIS 181714; 2015 WL 505471
- **Precedential status:** Published
- **Opinion:** Opinion of the court by McLaughlin
- **Judges:** McLaughlin
- **Cited by:** 10 later opinions in the Frix Law Library

## Citator (automated)

- No negative treatment found by the automated citator. That is not the same as a confirmation that the case is good law; read the citing cases.
- Full citator and citing cases: https://www.frixlaw.com/law-library/cases/7229863

## How later opinions describe it (automated extraction)

- concluding that Koresko violated Section 406(b)(1), which prohibits transactions between a plan and a fiduciary of the plan
- noting that a fiduciary violates section 1106(b)(1) “not only when it forwards money to itself, but also when it hires itself to perform work and then sets its own fees”

## Opinion text

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. Posh-Trial.312
II. Findings of Fact.
A. The Defendants and Their Relationships to One Another.
B. The Trustees and the Plan Administrator.
C. Participating Employers in the REAL VEBA or SEWBP Trust
D. Transfers from the Trust.•.
E. Establishment of “Death Benefit” Accounts.
F. Depositing Death Benefit Proceeds into KLF’s Account.
G. Transfer of Death Benefit Proceeds into a Second Account_
H. Transfer of Death Benefit Proceeds to Nevis and to KLF.
I. Loans on Insurance Policies ..
J. Transfer of Loan Proceeds into Mr. Koresko’s Escrow Account .
K. Transfer of Death Benefit and Loan Proceeds to an IOLTA Account
L. Transfer of Funds to Nevis .
M. Transfer of Death Benefit and Loan Proceeds to the Pershing Account
N. The Creation and Use of the 1187 Account.
O. Deposit of Plan Assets into the 1195 Account and the Subsequent Transfer of Those Assets. 05 CO
P. The Creation and Use of the 1146 Account. H CO
Q. The Creation and Use of the 1112 Account. (M CO
R. The Creation and Use of the Penn Public Trust, Inc., SPC, Account ^ CO
S. The Creation and Use of an Account in the Name of CTC, the Former Trustee. LO CO
T. Depositing of Plan Assets into a Separate Account After the Court’s Freeze Orders and After the Installation of the IF. ÍO CO
U. Transfer of Moneys from Employers to the 8384 Account. 05 CD CO
V. Depositing of Plan Assets into Yet Another Account, After the Court Instructed to Return Loan Proceeds . o CO
W. Total Amount of Diverted Plan Assets at Issue . 1-1 t> CO
*299 III. Conclusions of Law . co
A. ERISA Coverage. Co
B. Fiduciary Status. Co
C. ERISA Fiduciary Duties . CO
D. Relief. CO
1. Removal as Fiduciaries... CO
2. Restitution and Disgorgement. CO
3. Prejudgment Interest. CO
This action arises out of alleged violations of fiduciary duties under the Employment Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., in connection with a multiple-employer employee death benefit arrangement. The Secretary of Labor 1 (“the Secretary” or “DOL”) brought this suit against the Koresko Defendants, 2 Jeanne Bonney, Community Trust Company, 3 the Regional Employers Assurance Leagues Voluntary Employees’ Beneficiary Association Trust (“REAL VEBA Trust”), and the Single Employer Welfare Benefit Plan Trust (“SEWBPT”) (together, • “the Trusts”) 4 . The Secretary alleges that the defendants have violated Sections 403, 404, and 406 of ERISA, 29 U.S.C. §§ 1103 ,1104, and 1106. The Secretary also seeks to find certain parties liable for co-fiduciary liability under Section 405 of ERISA, 29 U.S.C. § 1105 .
The Secretary requests a permanent injunction against the Koresko Defendants and Jeanne Bonney, barring each of them from serving as a trustee or fiduciary, or as a representative in any capacity, to any employee benefit plan. The Secretary also seeks a permanent injunction against those defendants from serving in any capacity that involves decisionmaking authority or custody or control of the assets of any employee benefit plan. Finally, the Secretary seeks over fifty million dollars in restitution and disgorgement to the Trusts.
The Court held a three-day bench trial on June 9 through June 11, 2014. The Court had previously granted the Secretary’s motion for partial summary judgment on August 3, 2012, and the Court incorporates that decision into this memorandum. Solis v. Koresko, 884 F.Supp.2d 261 (E.D.Pa.2012). This memorandum and the Court’s earlier decision on partial summary judgment comprise the Court’s findings of fact and conclusions of law. The Court finds for the Secretary on all claims.
The Court concludes that the plans at issue are employee welfare benefit plans as defined by ERISA; that the plans have plan assets in the form of employee contributions, insurance policy proceeds, and earnings therefrom; and that the defen *300 dants are ERISA fiduciaries with respect to those plan assets.
The Secretary presented voluminous evidence of many violations of ERISA by the defendants, including: (1) the diversion of tens of millions of dollars of plan assets through more than 21 accounts in the names of more than 18 different entities (all the creation of Mr. Koresko) at 8 or more different banks; (2) the transfer of millions of dollars of plan assets into accounts which only Mr. Koresko controlled and which were out of the reach of the Trustee; (3) the taking out of over $35 million in loans on the Trusts’ insurance policies, and the transfer of the resulting monies to accounts which only Mr. Kores-ko controlled and which were out of the reach of the Trustee; (4) the creation and subsequent depositing of plan assets into various IOLTA accounts and accounts in Mr. Koresko’s personal name; (5) the transfer of millions of dollars of plan assets to law firms and consulting firms, from which neither the plans nor the beneficiaries benefitted, and only the defendants benefitted; (6) the use of death benefit proceeds to purchase property in the Caribbean island of Nevis and in South Carolina in Mr. Koresko’s personal name; (7) the use of plan assets to pay Mr. Koresko’s expenses, including utility bills and boat rentals; and (8) the use of plan assets to pay the defendants directly.
The Court, therefore, removes the defendants from any position of fiduciary authority and permanently bars the defendants from ever serving as fiduciaries or service providers to ERISA-covered plans. The Court also finds the Koresko Defendants liable for $19,852,114.88 in restitution for losses and disgorgement of profits.
Although the Court grants a permanent injunction against Ms. Bonney and finds that she did violate her fiduciary obligations, the Court will not order restitution or disgorgement from Ms. Bonney. Ms. Bonney did not personally benefit from the diversion or mishandling of the plan assets and acted only under the direction of Mr. Koresko. She therefore cannot be found financially liable. In addition, Ms. Bonney was seriously ill during most of the litigation and was represented primarily by Mr. Koresko — who the Court ultimately found had a non-waivable conflict of interest with respect to that representation.
I. Procedural History
A. Administrative Enforcement Proceedings
The Secretary issued subpoenas to Mr. Koresko and certain of the Koresko Defendants in 2004 in connection with an investigation into possible ERISA violations. The Secretary then filed two administrative enforcement actions related to those subpoenas, each of which were assigned to me: Chao v. Koresko, No. 04-mc-74 (E.D.Pa. filed Apr. 19, 2004), and Chao v. Koresko, No. 06-mc-192 (E.D. Pa. filed Oct. 12, 2006). 5 In the first Chao ease, the Court granted the DOL’s petition on August 23, 2004, to enforce the subpoenas. The Third Circuit subsequently affirmed the Court’s orders. Because Mr. Koresko refused to comply with the subpoenas, the Court ordered him to be incarcerated until he - produced the documents requested. The day before he was to be put in jail, Mr. Koresko complied with the subpoenas.
*301 The second administrative enforcement proceeding was based on new subpoenas issued by the DOL in 2006. The Court ordered enforcement for five of the six categories of requested documents on December 8, 2008. In an April 26, 2010, non-precedential opinion, the Third Circuit affirmed orders in both the '04 and '06 Chao cases and recommended that “all of the Koresko litigation be assigned to one district judge.” Opinion at 4, Secretary of Labor v. Koresko, 377 Fed.Appx. 238, 240 (3d Cir.2010).
B. Initial Complaint
While appeals from decisions in the administrative enforcement actions were pending, the Secretary instituted this civil suit against the Koresko Defendants on March 6, 2009. The Secretary also sued Jeanne Bonney and Community Trust Company, and it named the Trusts as defendants. This case was initially assigned to the Honorable C. Darnell Jones,. II.
Within days of the filing of the complaint, the Koresko Defendants, Ms. Bon-ney, and the Trusts filed emergency motions, requesting that the case be placed under seal and other injunctive relief, in response to a press release issued by the Secretary (Docket Nos. 6, 7). The Court concluded that the moving defendants did not meet their burden to justify a seal of the record in this case. Furthermore, the Court declined to enter injunctive relief because the defendants had not filed any responsive pleadings (Docket No. 15). The Court also denied a motion for reconsideration of that order (Docket No. 22). The defendants appealed, and that decision was affirmed by the Third Circuit on April 28, 2010, in a second non-precedential opinion. Opinion, Secretary of Labor v. Koresko, 378 Fed.Appx. 152 (3d Cir.2010).
On July 14, 2009, the Secretary filed an application for a temporary restraining order (“TRO”) and preliminary injunction (Docket No. 63). The Secretary sought an order prohibiting the Koresko Defendants from removing F & M Trust as trustee and from directing the transfer of any trust assets to themselves. Judge Jones held a TRO hearing on July 17, 2009, during which he denied the TRO request (Docket Nos. 71, 75). Prior to the TRO hearing, the defendants filed a motion to dismiss under Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6) (Docket No. 69). Judge Jones denied that motion in its entirety on August 31, 2009, 2009 WL 2776630 (Docket Nos. 107,108).
Judge Jones held a preliminary injunction hearing on September 2 and 3, 2009, and on October 6, 2009. 6 On January 15, 2010, the Court denied without prejudice the Secretary’s motion for a preliminary injunction because “the DOL has not made the significantly high required showing to succeed in securing injunctive relief at this stage.” Order at 2 (Docket No. 195). The Court also permitted transfer of the corpus of the Trusts to Penn Public Trust, which became the sole trustee.
At the defendants’ request, on March 17, 2010, the Court stayed this case for sixty days due to Ms. Bonney’s serious medical *302 condition (Docket No. 210). 7
On May 3, 2010, as a result of the Third Circuit’s recommendation that all of the Koresko litigation be assigned to one judge, then-Chief Judge Bartle reassigned the DOL’s civil case to me (Docket No. 213), along with several other cases involving Mr. Koresko and the Trusts. 8
On December 10, 2010, the Court placed this action in suspense for sixty days for the. parties to pursue settlement. (Docket No. 244). In February 2011, the parties filed status reports indicating that settlement talks continued. At that time, the DOL stated that it would request that the cases be removed from civil suspense if no progress was made (Docket No. 252). The Court removed the case from suspense in January 2012 and held a status conference on February 10, 2012 (Docket No. 260). The Court issued a scheduling order on February 13, 2012. 9
C. Motion for Summary Judgment
On February 28, 2012, the Secretary filed a motion for partial summary judgment (Docket Nos. 267-269). The Secretary sought to prove ERISA violations by Mr. Koresko, Ms. Bonney, PennMont, Ko-resko Law Firm, and Koresko & Associates with regard .to three of the employee welfare benefit plans participating in the Trusts.
The Court issued a decision on August 3, 2012', granting partial summary judgment in favor of the DOL (Docket Nos. 314, *303 315). 10 The Court concluded that Mr. Ko-resko, Ms. Bonney, and PennMont had violated Sections 403, 404, and 406 of ERISA as to certain employee welfare benefit plans participating in the REAL VEBA Trust. Although the Court deferred its decision on the relief requested by the Secretary, it stated that it would consider a request for narrower, more limited injunctive relief.
The Court also made the following conclusions that are relevant to this decision. First, although the master REAL VEBA Trust is not an employee welfare benefit plan, the Domenic M. Castellano, D.D.S., P.A. Plan, the Cetylite Industries, Inc. Plan, and the Décor Coordinates, Inc. Plan are employee welfare benefit plans under ERISA. Solis v. Koresko, 884 F.Supp.2d 261, 274 (E.D.Pa.2012), appeal dismissed (Aug. 19, 2013). ERISA fiduciary responsibility provisions applied to the Cetylite, Décor, and Castellano plans, and those plans had “plan assets” to which ERISA fiduciary responsibilities could attach. Id. at 285 . The Court also ruled that the July 29, 2009, Amendment to the REAL VEBA Plan Document, which purported to eliminate non-owner employees (“NOEs”) from the arrangement altogether, was invalid. Id. at 280 .
In addition, the Court made several conclusions as to liability, not just to the structure of the REAL VEBA arrangement. First, the Court concluded that PennMont, Mr. Koresko, and Ms. Bonney are fiduciaries of the three plans at issue, and they each violated their fiduciary duties under Section 403(a) of ERISA by holding assets of the three plans even though they were not trustees of those plans. Id. at 290, 292 . Furthermore, the Court held that those three defendants violated the fiduciary duty of loyalty and duty of care under Section 404(a)(1) of ERISA by directing or permitting plan assets to be diverted into accounts subject to their sole control. Id. at 294 .
Lastly, the Court also held that Penn-Mont, Mr. Koresko, and Ms. Bonney violated Section 406(b)(1) of ERISA as to the Cetylite plan. Section 406 prohibits fiduciaries from engaging in transactions that involve a transfer of plan assets to a party in interest. The Court concluded that, as fiduciaries, PennMont, Mr. Koresko, and Ms. Bonney were parties in interest as defined by ERISA. PennMont directed that certain insurance proceeds related to the Cetylite plan be transferred to an account held in the name of Ms. Bonney and Mr. Koresko. Id. at 295-97 .
D. Supplemental Complaint
As discovery progressed in this case, 11 the Secretary filed a supplemental complaint on November 8, 2012 (Docket No. 349). Although the Secretary did not change his request for relief, the Secretary added new claims against Mr. Koresko and Penn Pufilic Trust as well as new allegations of co-fiduciary liability against Mr. Koresko, Penn Public Trust, PennMont, and Koresko Law Firm. These allegations involve loans taken out against insurance *304 policies held by the Trusts for the benefit of the plans.
The Secretary alleges that, from July 9, 2009, until January 15, 2010, Mr. Koresko and Penn Public Trust applied for and received insurance policy loans on the policies that insured the lives of participants in the plans. Although the checks were made payable to the Trusts and the plans, the checks were deposited into an account in Mr. Koresko’s name. The Secretary alleges that beneficiaries will now receive less from those insurance policies where loans were taken out. The Secretary alleges that these actions by Mr. Koresko and Penn Public Trust constituted another violation of Sections 404 and 406 of ERISA. Supplemental Compl. ¶¶ 43-48, 55 (Docket No. 349).
On January 30, 2013, the Court held a status conference with the parties. At that conference, the parties requested the assistance of a judge for settlement negotiations. On March 19, 2013, the Court referred the case to the Honorable William H. Yohn, Jr. for settlement (Docket No. 360). Through May 2013, the Court decided several discovery motions, and the parties negotiated settlement with Judge Yohn. No settlement was reached.
E. Motion for Temporary Restraining Order and Preliminary Injunction
On June 19, 2013, the Secretary filed another application for a TRO and prelitni-nary injunction (Docket No. 377). At that time, the Secretary presented evidence and argued that the Koresko Defendants had diverted death benefit proceeds totaling approximately $2.5 million for their own use and benefit. There was also evidence that the Koresko Defendants had diverted $35 million in loans on insurance policies owned by the Trusts for the benefit of the plans and employer arrangements participating in the Trusts to accounts titled to entities other than the plans’ trustee. Finally, the Secretary alleged that the Koresko Defendants had misappropriated at least $3.5 million of these loan proceeds for their own use and benefit. Ultimately, the Secretary asserted that the Koresko Defendants dissipated and misappropriated over $6.8 million in loan and death benefit proceeds. The Secretary sought the appointment of an independent fiduciary to administer the plans, pay out benefit claims, and repay the loans. 12
The Court scheduled an evidentiary hearing on the motion for July 8, 2013. 13 The Koresko Defendants filed a motion under seal for a continuance of the eviden-tiary hearing (Docket No. 388). That motion was based on Mr. Koresko being physically unwell, and it attached an affidavit by a neurologist, Dr. Christopher Bradley. Dr. Bradley’s opinion was based primarily on Mr. Koresko’s complaints to *305 him and not on Dr. Bradley’s independent medical examination of Mr. Koresko. Dr. Bradley explained that he had ordered Mr. Koresko to undergo EEG and MRI testing during the next week.
On June 28, 2013, the Court held an on-the-record telephone conference with counsel in the case to discuss Mr. Koresko’s request for a continuance and the potential for interim relief during that four-week continuance, among other items (Docket No. 420). After the call, the Court issued a follow-up order, which stated that the July 8 hearing would not be a full eviden-tiary hearing, but instead the Court would hear arguments regarding interim relief and discuss with counsel the scheduling of an evidentiary hearing (Docket No. 391).
The Court also directed Mr. Koresko’s counsel to submit further medical documentation on or before the July 8 hearing, including:
a second declaration from Dr. Bradley that describes the results of Mr. Kores-ko’s MRI and EEG and any other diagnostic tests performed on Mr. Koresko up to that point as well as Dr. Bradley’s diagnosis of Mr. Koresko and opinion regarding Mr. Koresko’s ability to participate in a deposition and evidentiary hearing; accident reports and other documentation regarding Mr. Koresko’s automobile accident; and medical records regarding Mr. Koresko’s concussion sustained approximately five years ago that the recent automobile accident is alleged to have exacerbated
(Docket No. 391).
Lastly, with the consent of the parties, the Court entered an interim order on June 28 freezing sixteen bank accounts pending a hearing on the motion for a TRO (Docket No. 392). The Court allowed PennMont and Penn Public Trust to pay the insurance premiums on the pending life insurance policies out of a certain account.
On the morning of the July 8 hearing, Montgomery, McCracken, Walker & Rhoads LLP (“Montgomery McCracken”), who had previously been representing the defendants, notified the Court of its intention to file a motion to withdraw as counsel. 14 Mr. Koresko was not present because he had not attended the hearing. The Court therefore provided Mr. Koresko with the opportunity to come to the courtroom or to participate by phone. Mr. Koresko chose to participate in the proceedings by phone and objected to Montgomery McCracken’s motion to withdraw. The Court discussed the motion with Montgomery McCracken and Mr. Koresko in chambers ex parte. 15
After the discussion in chambers, the scheduled hearing proceeded in the courtroom. The Court considered only whether to continue, narrow, or expand the interim order regarding the frozen accounts, which had already been put into place with the consent of counsel, as discussed above. At the end of the hearing, the Court scheduled another hearing for August 12, with the concurrence of Mr. Koresko, to allow him the opportunity to appear in person.
On July 9, 2013, the Court entered a modified interim order, removing three *306 bank accounts included in the frozen accounts but otherwise continuing the temporary freeze (Docket No. 407). On July 22, 2013, the Court denied the Koresko Defendants’ motion to postpone the August 12 evidentiary hearing (Docket No. 434). The Court also issued a third interim order on July 23, following a telephonic hearing on July 22, in response to the Koresko Defendants’ attempts after the July 8 evidentiary hearing to remove cash value from the insurance policies at issue (Docket No. 436).
In the July 23 interim order, the Court concluded that the Secretary and the private litigants had shown a likelihood of success on the merits of the ERISA violation and breach of fiduciary duty claims and that there was a probability of irreparable injury to the public, plan participants, and beneficiaries. The Court enjoined the Koresko Defendants from expending or otherwise disposing of the cash value, or reducing the value, of any life insurance policies owned by or for the benefit of Trusts or the plans. The Court also ordered the Koresko Defendants to produce certain documents related to the policy loans, to withdraw their pending requests to remove cash value from the policies, and to restore any cash value removed after July 8, 2013.
Two days later, on July 25, 2013, the Koresko Defendants filed a suggestion of bankruptcy (Docket No. 441). 16 The Court ruled that the case would remain active and proceed because the Secretary’s action was exempt from the automatic stay under 11 U.S.C. § 362 (b)(4), which excepts actions to enforce a governmental unit’s police or regulatory power (Docket No. 446). The Koresko Defendants filed a motion for reconsideration of that order on July 30 (Docket No. 449). The Court continued the hearing scheduled for August 12 (as well as depositions scheduled for early August) in light of the motion for reconsideration (Docket No. 457).
The Court ultimately denied the Kores-ko Defendants’ motion for reconsideration on August 28, 2013, and ordered the parties to file proposed schedules for the outstanding depositions and the preliminary injunction hearing (Docket Nos. 474, 475). *307 The Court then scheduled a hearing for September 16, 2013, to hear arguments on motions to modify the freeze orders and on whether the appointment of an independent fiduciary was appropriate (Docket No. 486).
F. September 16 Hearing and Appointment of the Independent Fiduciary
At the September 16, 2013, hearing, the Court appointed the Independent Fiduciary (“IF”), The Wagner Law Group. Based on input from the parties, the Court issued an order on September 16 concluding that the Secretary had shown a likelihood of success on the merits on his ERISA claims and that there was the probability of irreparable injury to the public, plan participants, and beneficiaries absent the relief requested (Docket No. 496; see also Docket Nos. 502, 515).
In the September 16 Order, the Court also issued an injunction removing the Ko-resko Defendants and their agents from any position they held at that time with regard to the Trusts and prohibiting them from serving as any type of representative of the plans or employer arrangements participating in the Trusts. The IF was ordered to administer the plans, employer arrangements, and the Trusts and was given full authority and control with respect to the management or disposition of the assets of the plans, employer arrangements, and the Trusts. The IF was also directed to inventory the assets of the Trusts and the plans or employer arrangements, as well as to create a listing of diverted assets. The IF was also ordered to develop a process for day-to-day administration of the Trusts. The Court ordered an initial status report from the IF by the end of October 2013. Lastly, Mr. Koresko was ordered to turn over all assets of the plans, employer arrangements, and the Trusts to the IF as well as to provide the IF with the name, account number, and location of any bank accounts containing plan assets (Docket No. 496).
G. Discovery and Contempt Proceedings
Mr. Koresko did not comply with the September 16 order, which spawned numerous motions for contempt and contempt hearings in the following months. The Secretary filed his initial motion for contempt on September 27, 2013 (Docket No. 518). In that motion, the Secretary detailed how Mr. Koresko had made clear that he did not intend to comply with the September 16 order to provide the IF with (1) all documentation related to the plans and employer arrangements; (2) the name, account number, and location of any accounts containing plan assets; and (3) all records relating to the finances and administration of the plans and an accounting of all transfers, payments, and expenses paid in connection with the plans. In communications to the IF, Mr. Koresko stated that he would not permit his employee to answer queries about the Trusts, that he himself would not answer such questions, and that he would not provide any documents to the IF. Because Mr. Koresko appealed the September 16 order, he told the DOL that he need not comply with it.
The Court scheduled a contempt hearing for October 2, 2013, at which time the Koresko Defendants were to show cause why they should not be held in civil contempt and subject to sanctions for their failure to comply with the September 16 order (Docket No. 522). Much of the hearing on October 2 discussed the possible retention of Lawrence. McMichael, Esq., from Dilworth Paxson LLP (“Dil-worth”), on behalf of Mr. Koresko for purposes of the contempt hearing, and whether Mr. McMichael could be paid a retainer *308 from a certain account that had been frozen by the bank.
The Court hesitated to find Mr. Koresko in contempt, stating that it “would like to attempt to see if we can’t get this order complied with without” having to “find people in contempt and the sanctions that come with that civil contempt which includes incarceration.” 10/2/13 Hr’g Tr. at 37:7-37:11 (Docket No. 534).
The following day, as the contempt hearing continued, Mr. McMichael produced to the DOL and IF an inventory, created by Mr. Koresko the night before, of insurance policies, insurance policy loans, and cash assets of the Trusts. The remainder of the hearing was spent establishing processes for obtaining further information on other bank accounts and for the ex parte freezing of appropriate bank accounts (Docket No. 536). Following Mr. McMi-chael’s submission to the Court, the Court approved Dilworth’s representation of Mr. Koresko in the contempt proceedings on October 4 and authorized a retainer to be paid from one of the frozen accounts (Docket No. 530).
On October 7, the Court issued an order referring the September 16 order regarding the IF to Judge Hey in order to monitor its implementation (Docket No. 532). After the parties held several telephone conferences with Judge Hey, the Court scheduled another contempt hearing for November 18 and 19, 2013, to take stock of the parties’ progress (Docket No. 616). The Court then issued a number of orders, including the establishment of a procedure for the IF to review and for Mr. Koresko to produce files from Mr. Koresko’s office and offsite storage (Docket No. 604).
Mr. Koresko’s deposition was taken on December 17 and 18, and January 7 and 8, in the Court’s jury room, with Dilworth’s representation. Several third-party depositions were also taken during these months.
On February 27, 2014, the Court directed the DOL to inform the Court of any outstanding contempt issues. On March 10, the DOL filed a supplemental memorandum and exhibits that focused on the refusal of the Koresko Defendants to turn over certain trust assets to the IF, particularly with regard to certain condominiums on the Caribbean island of Nevis and a property in South Carolina. At this point, Mr. Koresko also refused to turn over more than $1 million held in a Nevis offshore account. The DOL emphasized how, since the Court ordered the transfer of those funds on September 16, Mr. Koresko had flown to Nevis and moved the money from Scotia Bank into a new account at the Royal Bank of Trinidad and Tobago in the name of Koresko Law Firm (Docket No. 726). Mr. Koresko, represented by Dil-worth, responded in opposition to the DOL’s supplemental motion for contempt on March 17, 2014 (Docket No. 736).
The Court held a subsequent contempt hearing on April 1. Rather than holding Mr. Koresko in contempt, the parties agreed on language in an order permitting the IF to engage Nevisian counsel to obtain written guidance on certain issues of Nevisian law (Docket No. 762). The Court also ordered Mr. Koresko to sign letters authorizing the Nevis banks to give information to the IF about the accounts held at those banks, which Mr. Koresko did sign.
The IF obtained the requested information from Nevisian counsel and submitted a letter to the Court on June 4, 2014 (Docket No. 834). The Court held a conference with counsel for Mr. Koresko and the DOL on June 25, 2014, concerning the Nevis condominiums and bank account. On June 27, 2014, the Court ordered Mr. Koresko to wire transfer the Nevis funds *309 by July 14 to a frozen account, used for the administration of the Trusts and in the control of the IF (Docket No. 898).
On July 11, 2014, Mr. Koresko filed a declaration that the Royal Bank of Trinidad and Tobago would not wire the Nevis funds into the United States as requested (Docket No. 912). As a result, it was agreed to that Mr. Koresko would travel to Nevis, along with Ms. Catherine Pappas, an associate at Dilworth, to arrange for the transfer in person (Docket No. 945). While Mr. Koresko was visiting Florida, however, evidently driving to the Miami Airport in preparation for his travel to Nevis, he became involved in a single-car accident on the early morning of July 16, 2014 (Docket No. 977). His plans to travel to Nevis were indefinitely postponed due to continuing health issues. 17
On September 10, 2014, the Court denied the Secretary’s motion for contempt except with respect to Mr. Koresko’s failure to transfer to the United States the accounts held in the Nevis branch of the Royal Bank of Trinidad and Tobago (Docket No. 990). The Court provided Mr. Ko-resko until October 3, 2014, 18 to transfer the Nevis accounts or face contempt by the Court. However, given Mr. Koresko’s purported health concerns, the Court allowed Mr. Koresko to submit medical documentation by a treating physician, in lieu of transferring the accounts himself, which would explain “with sufficient specificity” how Mr. Koresko’s condition inhibits him from transferring the accounts (Id.).
On October 10, 2014, Mr. Koresko chose to submit medical documentation instead of transferring the accounts (Docket No. 1026). The documentation submitted, however, did not meet the Court’s directive that Mr. Koresko submit documentation of “sufficient specificity” (Docket No. 1033). In fact, the Court found that the filed physician letters were “contradictory” and “fail[ed] to include any supporting results from physical examinations, clinical findings, or supporting tests,” instead “repeating] the claims made by Mr. Koresko himself’ (Id.).
As a result, the Court ordered that Mr. Koresko transfer the accounts from Nevis by October 31, 2014, or sign a power of attorney providing the IF control of the accounts by the same date (Id.). The Court also authorized Mr. Koresko to draft his own power of attorney, but, if Mr. Koresko chose to do so, the Court directed that the new version be “similar in effect to the IF’s draft” in order for Mr. Koresko to avoid the Court’s contempt (Id.).
Mr. Koresko chose to draft his own power of attorney, which, according to Nevi-sian counsel, was technically defective (Docket No. 1108). Subsequently, the Court ordered Mr. Koresko to sign the power of attorney by December 8, 2014, as already approved by Nevisian counsel, or face contempt of the Court (Docket No. 1087). 19 On December 15, 2014, after Mr. Koresko’s counsel informed the Court that it was “unable to reach Mr. Koresko despite multiple efforts to determine the sta *310 tus” of the power of attorney (Docket No. 1094) — and after a full week elapsed since the last Court imposed deadline — the Court held Mr. Koresko in contempt (Docket No. 1098). The Court provided Mr. Koresko three days to purge himself of contempt before he would be required to surrender himself to the Office of the United States Marshal (Id.). On the morning of the day that Mr. Koresko was to surrender himself, his counsel informed the Court that Mr. Koresko had executed the revised power of attorney (Docket No. 1102). On December 30, 2014, the IF confirmed that it had received the signed power of attorney, executed by Mr. Kores-ko and witnessed by a notary (Docket No. 1115). 20
H. IF Reports
In the September 16 order, the IF was directed to report to the Court on the status of its work by October 28, 2013 (Docket No. 496). After an extension, the IF submitted its report and exhibits to the Court on October 31, 2013. The Court docketed that report under seal (Docket Nos. 566, 567, 573).
On February 4, the Court ordered the IF to submit a supplemental report by March 14, 2014, to serve as a final report on the IF’s tasks (Docket No. 681). On March 3, the Court directed the IF to draft the report in a way that participant-specific information could be redacted, if necessary (Docket No. 712). The IF submitted its March 14 report in a timely fashion, and that report was docketed under seal (Docket Nos. 738, 739).
On March 26, 2014, the Court directed the IF to submit a supplementary report by March 31. The Court ordered the IF to provide additional information, as requested by the DOL, to assist the Court in making determinations as to coverage, outstanding loans, and the assets and liabilities of the plans (Docket No. 750). The March 31 report was timely received and docketed under seal (Docket Nos. 760, 761).
I. Jeanne Bonney
On February 19, 2014, the Secretary filed a motion requesting that the Court reconsider its earlier order directing that this case proceed without the participation of Ms. Bonney (Docket No. 704). The Secretary filed this motion seeking to depose Ms. Bonney, and he requested that the Court order Ms. Bonney to inform the Court about her current ability to participate in the litigation and to submit documentary evidence to substantiate her medical conditions. The Secretary also moved to have Mr. Koresko disqualified as Ms. Bonney’s attorney due to a non-waivable conflict of interest.
The Court issued an order on April 22, 2014, granting the Secretary’s motion, allowing the DOL to depose Ms. Bonney, and disqualifying Mr. Koresko as Ms. Bon-ney’s attorney (Docket No. 782). The Court then received a detailed affidavit from Ms. Bonney on May 5, which discussed her health. Based on that affidavit, the Court reconsidered its decision as to Ms. Bonney and concluded that Ms. Bon-ney had adequately shown that she is unable to participate in these proceedings (Docket No. 795).
On June 2, at the Court’s request, the DOL responded as to its position on pro *311 ceeding against Ms. Bonney. The DOL also submitted a response to Ms. Bonney’s affidavit on June 7. Both of these letters are filed under seal (Docket Nos. 865, 866). The Court also held several on-the-record telephone conferences with Ms. Bonney and the DOL as to whether Ms. Bonney was able to be deposed.
Prior to the start of trial, Ms. Bonney informed the Court that she would be willing to agree to be permanently disbarred in return for dismissal of the case against her. The DOL would not agree to those terms. Ms. Bonney’s deposition was held on July 80 at the courthouse ip Montgomery County, Pennsylvania, with Judge Hey presiding. In large part, the Court accepted the facts presented in Ms. Bonney’s deposition as true, per the findings of fact below.
J. Pretrial Proceedings
On March 3, 2014, the Court issued a trial scheduling order (Docket No. 720). The trial was scheduled to begin June 9, 2014, potentially running through June 20. The Court scheduled the final pretrial conference for June 2, 2014. Deadlines for pretrial memoranda, pretrial motions, and the exchange of exhibits were also set in that order. The Court also ruled that Mr. Koresko would not be represented at trial by counsel paid from funds in the frozen accounts, although Mr. Koresko could represent himself, or retain counsel using his own funds, for the trial and pretrial proceedings (Docket No. 720).
On May 19, the Secretary timely filed a motion in limine to admit summaries of voluminous documents (Docket No. 813). Mr. Koresko did not timely respond by May 27, as required by the trial scheduling order. Mr. Koresko also failed to. submit a pretrial memorandum. 21
On June 2, the Court held the final pretrial conference. Although the final pretrial conference was scheduled to be held in person, Mr. Koresko did not appear and participated by phone only after he was contacted by the Court. When on the phone, Mr. Koresko stated that he was unaware of the pretrial conference, although it had been scheduled on the docket approximately three months earlier. Mr. Koresko also told the Court that he had materials pending before the Third Circuit to postpone the trial. The Court stated that the trial would go forward as scheduled unldss the Third Circuit took action otherwise. Final Pretrial Conference Tr. at 4:5-7:5 (Docket No. 868). The Court subsequently granted' the Secretary’s motion in limine to admit summaries of voluminous documents on June 4 (Docket No. 827). The Court also received copies of the DOL’s exhibits prior to trial. At no point did.Mr. Koresko submit any exhibits.
Mr. Koresko then filed his own motion in limine on June 4, including on behalf of Jeanne Bonney and the Trusts. (Docket No. 830). That same day, Mr. Koresko also filed a motion for recusal, postponement of trial, stay, and transfer of the case *312 (Docket No. 831). The Court denied Mr. Koresko’s motion in limine as late and declined to engage with Mr. Koresko’s arguments on the merits at that juncture. The Court stated that those arguments had either been rejected or were premature given the trial on June 9 (Docket No. 838). The Court also denied the motion for recusal because the Court had addressed many of those merits-related issues previously (Docket No. 837). The Court then denied a renewed motion for recusal and a corrected renewed motion for recusal on July 6 (Docket No. 847).
K. Trial
Mr. Koresko filed several motions, both in this Court and in the Third Circuit, over the weekend leading up to the June 9 trial date. On Sunday, June 8, Mr. Koresko filed a “notice” that he had filed a motion for emergency stay of the trial in the Third Circuit on June 7 (Docket No. 848). The Third Circuit declined to take any action on the motion because it was not filed in sufficient time to allow the DOL to respond or in sufficient time for the Court to properly consider the motion. The Third Circuit directed the parties to show cause within three days why the motion should not be dismissed as moot. Order, Secretary United States Department of Labor v. Koresko, No. 13-3827 (3d Cir. June 9, 2014). 22
Without a definitive ruling from the Third Circuit, on the morning of June 9, Mr. Koresko sent in a letter to the Court stating that he would not appear at the trial, which the Court gave to the DOL and docketed under seal (Docket No. 854). On June 9, prior to the beginning of the trial, Mr. Koresko also filed a motion on behalf of his brother, Lawrence Koresko, seeking to quash the subpoena from the Secretary requiring his appearance at trial (Docket No. 849). After hearing from the DOL on that motion, the Court denied the motion to quash because Mr. Lawrence Koresko was already represented by another attorney (Docket No. 852).
The Court chose to proceed with the trial, without Mr. Koresko, allowing for the possibility that he might yet choose to appear. 23 The DOL completed its case on June 11, but neither Mr. Koresko nor any representative of Mr. Koresko appeared at the trial.
L. Post-Trial 24
On June 20, 2014, the Court scheduled a telephone conference for June 23 with the *313 DOL and Mr. Koresko in order to discuss a schedule for the remainder of the case (Docket No. 875). Mr. Koresko did not participate in that telephone conference, but he submitted a letter on June 23, in part discussing his desire to supplement the trial record and what evidence he wanted the Court to consider in making its final decision (Docket No. 886).
The Court issued a scheduling order on June 26, 2014, allowing Mr. Koresko to submit information to be included in the trial record, such as whether he would like to testify or have anyone else testify, or whether he wanted to present any documents or depositions. The Court also set a schedule for the parties to submit their proposed findings of fact and conclusions of law (Docket No. 894). On June 27, the Court expanded Dilworth’s representation of Mr. Koresko, over the objection of the DOL, to include those tasks from the June 26 order (Docket No. 898).
Mr. Koresko’s counsel submitted a document stating what documents Mr. Koresko sought to add to the trial record and what witnesses Mr. Koresko sought to call in his defense (Docket No. 924). After the Court held a conference with the parties on July 15, the Court issued a scheduling order requiring the DOL to submit its proposed findings of fact and conclusions of law by July 24. The Court allowed Mr. Koresko to submit a revised request regarding evi-dentiary submissions by August 7, and the Court would hold a hearing to discuss those requests on August 12 (Docket No. 926).
The DOL submitted its proposed findings of fact on July 24, 2014 (Docket No. 941). On August 6, the DOL filed a supplemental attachment to its proposed findings of fact and conclusions of law (Docket No. 964). On August 7, Mr. Koresko’s counsel submitted a supplemental designation of documents and witnesses (Docket No. 967).
The Court held an on-the-record status conference on August 12 to determine what additional evidence, if any, Mr. Ko-resko could still submit after the June trial (Docket No. 977). In an order that same day, the Court directed both the Secretary and Mr. Koresko’s counsel to submit to the Court updated documents by September 5, 2014: the Secretary would file a revised findings of fact and conclusions of law, which would include Ms. Bonney’s deposition testimony, while Mr. Koresko’s counsel would file his response to the Secretary’s findings of fact, including a section on legal defenses he intends to make and what additional evidence he may need ad *314 mitted to support those legal defenses (Docket No. 975).
On September 12, 2014, the Secretary-filed a revised findings of fact and conclusions of law memorandum (Docket No. 997). Two weeks later, on September 26, 2014, the Secretary filed his objections to Mr. Koresko’s memorandum of law and defenses while Mr. Koresko’s counsel filed his response to the Secretary’s second revised findings of fact and conclusions of law (Docket Nos. 1014,1015).
On October 21, 2014, Mr. Koresko’s counsel filed a second supplemental memorandum of law regarding defenses (Docket No. 1036), 25 which the Secretary responded to on October 29 (Docket No. 1041).
Upon review of the proposed findings of fact and Mr. Koresko’s challenges to those facts, the Court directed the Secretary to answer several questions regarding the findings of fact by November 24, 2014, and for Dilworth to respond by December 4, 2014 (Docket Nos. 1052,1056). The Secretary confirmed that some of its calculations were incorrect and amended its findings of fact accordingly (Docket No. 1075). 26
II. Findings of Fact
A. The Defendants and Their Relationships to One Another
1. Penn Mont Benefit Services, Inc. (“PennMont”) is a Pennsylvania corporation with offices at 200 W. 4th Street, Bridgeport, Pennsylvania. Government Exhibit (“GX”) 27 43; June 11; 2014, Tr. 43:6-43:13 (L. Koresko).
2. John J. Koresko, V (“Mr. Koresko” or “John Koresko”), is the president and, until July 2013, was a 70% owner of Penn-Mont, which was a corporate affiliate of Koresko & Associates, P.C. (“KAPC”), a law firm. GX148 at 63:18-63:22 (J. Kores-ko Dep., Dec. 13, 2013); GX147 at 78:3-78:10 (J. Koresko Dep., Aug. 25, 2009); June 11, 2014, Tr. 11:22-11:23 (L. Kores-ko). His brother, Lawrence Koresko, was the vice president and, until July 2013, was a 30% shareholder of PennMont. June 11, 2014, Tr. 12:2-12:6 (L. Koresko). In July *315 2013, John Koresko became the sole shareholder of PennMont after Lawrence Ko-resko stepped down. June 11, 2014, Tr. 11:6-11:23 (L. Koresko).
3. John Koresko is the sole shareholder and founder of the Koresko Law Firm (“KLF”), the successor to KAPC. GX44; GX46; GX148 at 64:3-64:10 (J. Koresko Dep., Dec. 17, 2013).
4. Jeanne Bonney is an attorney who was a salaried employee of Mr. Koresko’s law firms. GX153; June 11, 2014, Tr. 7:11-7:12, 55:1-55:12 (L. Koresko). Her employment with KLF ended on March 10, 2010. GX176 at 4:10-4:12 (Bonney Dep., July 30, 2014). At no point in her career did she have an ownership interest in either KLF or KAPC. GX176 at 18:20-18:25 (Bonney Dep., July 30, 2014). Like all employees of KAPC and KLF, she reported to John Koresko or Lawrence Koresko, with John Koresko serving as the “boss.” GX176 at 125:25-126:1 (Bonney Dep., July 30, 2014); GX176 at 23:25-24:3 (Bonney Dep., July 30, 2014) (“I could instruct others. But I didn’t supervise those other people. That wasn’t my job. My job was to just get them up and running. Everybody reported directly to John or Larry, or both, depending on the function.”).
5. KAPC and KLF also had offices at 200 W. 4th Street, Bridgeport, Pennsylvania. June 11, 2014, Tr. 42:15-42:18 (L. Koresko).
6. PennMont did not have any employees of its own. GX148 at 66:21-67:1 (J. Koresko Dep., Dec. 13, 2013); GX176 at 41:6-41:7 (Bonney Dep., July 30, 2014). All persons who performed administrative work for PennMont, including Ms. Bonney, Larry Townsend, and Lawrence Koresko, were employees of KAPC and KLF. June 11, 2014, Tr. 44:4-44:7 (L. Koresko); GX148 at 67:1-67:17 (J. Koresko Dep., Dec. 13; 2013); GX176 at 41:10-42:1 (Bon-ney Dep., July 30, 2014).
7. Penn Public Trust (“PPT”) is a nonprofit corporation with offices at 200 W. 4th Street, Bridgeport. June 11, 2014, Tr. 43:6-43:15 (L. Koresko). Mr. Koresko is the sole director of PPT, having signed its articles of incorporation and directed its fiduciary activities. GX42; GX147 at 31:17-31:19, 41:6-41:15 (J. Koresko Dep., Aug. 25, 2009).
8. John Koresko effectively served as Trustee and “CEO” of PennMont, while Lawrence Koresko, in his time with Penn-Mont, served as the “banker” and “COO.” GX176 at 24:25, 28:23-24 (Bonney Dep., July 30, 2014); see also id. at 24:15-25:2 (Bonney Dep., July 30, 2014).
B. The Trustees and the Plan Administrator
9. PennMont was the named Plan Administrator of the Plans. GX48 at § 1.13; GX49 at § 1.12; GXlal through la23 at ¶ 2.a.c.; GX148 at 65:19-66:1 (J. Koresko Dep., Dec. 13, 2013); GX147 at 127:21-128:2 (J. Koresko Dep., Aug. 25, 2009).
10. PennMont created a fictitious business association named the Regional Employers Assurance Leagues (“REAL”). This association does not exist “as an entity” and the “association” consisted of John Koresko and Lawrence Koresko. GX147 at 85:23-86:7 (J. Koresko Dep., Aug. 25, 2009).
11. On or around March 10, 2002, Community Trust Company (“CTC”) entered into an amended and restated Master Trust Agreement for the Regional Employers Assurance League Voluntary Employees’ Beneficiary Association (“REAL VEBA”) with PennMont, naming CTC as the Trustee of the REAL VEBA. See generally GX48. Lowell Gates, chairman of the Board of CTC, John Koresko, and *316 Lawrence Koresko each signed the’ Master Trust Agreement, which John Koresko had drafted. GX48; GX176 at 34:21-34:23 (Bonney Dep., July 30, 2014).
12. On or around December 30, 2002, CTC entered into another Master Trust Agreement naming CTC as the Trustee for the Single Employer Welfare Benefit Plan (“SEWBP”). GX49. Similar to REAL VEBA’s trust agreement, Mr. Gates, John Koresko, and Lawrence Ko-resko each signed the Master Trust Agreement for the Single Employer Welfare Benefit Plan Trust (“SEWBPT”). GX49.
13. CTC was the only trustee of the Plans from March 2002 to November 30, 2008. PennMont had rejected a “co-trustee” model with CTC, seeking instead a “custodian agreement.” GX52 (Email from Jeanne Bonney to Donald Walters, Vice President, CTC).
14. On November 30, 2008, CTC merged with Farmers & Merchants Trust Company of Chambersburg (“F & M Trust”). July 17, 2009, Tr. 13:16-13:18.
15. After the merger, CTC ceased to exist as an independent entity and its Board of Directors was dissolved. GX156 at 36:2-36:4, 37:6-37:25 (Gates Dep., Mar. 12, 2014). Mr. Gates involvement with the Trust ended at the time of the merger. Id. at 8:14-8:22 (Gates Dep., Mar. 12, 2014).
16. F & M Trust was the successor by merger to CTC, and thus became the Trustee and a' named fiduciary of the Plans. Docket No. 282, 268.
17. On July 14, 2009, the Secretary of Labor (“the Secretary”), U.S. Department of Labor (“DOL”), moved for a Temporary Restraining Order (“TRO”) and Preliminary Injunction enjoining Mr. Koresko from dismissing F & M Trust and installing PPT as Trustee. Docket No. 63. While that motion pending, Judge Jones issued a “standstill Order” on November 6, 2009, prohibiting all parties from transferring “any funds of any kind for any purpose.” 28 Docket No. 151.
18.F & M Trust continued as the sole Trustee, as memorialized in Judge Jones’ Orders, until January 15, 2010, when Judge Jones denied the Secretary’s motion, and issued an Order permitting PPT to become the Trustee. Docket Nos. 165, 181,195.
C. Participating Employers in the REAL VEBA or SEWBP Trust a. Plan Establishment
19.Employers participating in the REAL VEBA or SEWBPT established employee benefit plans by signing adoption agreements. The first, unnumbered paragraph of this adoption agreement reads, “The undersigned Employer ... hereby adopts the Voluntary Employees’ Beneficiary Association Health and Welfare Plan and its companion Trust ... by executing this Adoption Agreement and the provision herein set forth.. JJKDOL129951; JJKDOL073620; JJKDOL066086; JJKDOL050646; JJKDOL220787. The See, e.g., GXlal GXla2 GXla3 GXlal 1 GXla21 column at at at at at labeled “Adoption Agreements” in the DOL’s exhibit GX1 illustrates whether an adoption agreement was signed by each employer and, if so, the date it was signed. See June 9, 2014, Tr. 20:8-29:91 (Sweeting) (“[W]e looked at the Adoption Agreement. We wanted to see that this employer did, in fact, agree to participate in the arrangement.”).
20.Jocelyn Diaz Sweeting is a supervisory investigator with DOL’s Employee *317 Benefits Security Administration. She has participated in the investigation of the REAL VEBA Trust and SEWBPT since 2006 and became the lead investigator in 2008. June 9, 2014, Tr. 10:9-10:16; 11:14-11:21 (Sweeting).
21. On March 10, 2006, in response to the DOL’s administrative subpoenas, Mr. Koresko produced documents regarding the various plans. June 9, 2014, Tr. 19:13-19:21. Because the documents were unidentified and unindexed, the DOL organized the documents and created a database based on those documents and additional documents supplied during litigation by Mr. Koresko’s former counsel and by the Independent Fiduciary (the “IF”), the Wagner Law Group. Id. at 17:9-17:16, 19:13-19:21, 22:13-22:17, 27:22-28:7 (Sweeting). That database is summarized in GX1. Approximately eight to ten DOL staff and investigators worked to compile the documents for the database. June 9, 2014, Tr. 18:12-18:15 (Sweeting).
22. KAPC and KLF had its own database. June 10, 2014, Tr. 139:25-141:13 (Townsend). While an employee of the Koresko law firms, Larry Townsend was assigned to develop a database to capture all of the data associated with the Trusts. Id. He tracked the employees, the participants, whether the participants had signed participation agreements, and whether they were participating in a death benefit plan. Id. All financial transactions related to the REAL VEBA and SEWBPT would be recorded in the database. If a payment arrived from an employer, and Mr. Townsend was aware of it, he would enter that payment as a financial transaction into the database. In addition, if a payment was made from the Trusts, and Mr. Townsend was aware of it, he would record that into the database as well. Id. at 180:9-180:16 (Townsend).
23. In creating the database, Mr. Townsend reviewed documents maintained by PennMont during the course of its plan administration business. June 10, 2014, Tr. 141:24-142:1; 142:10-142:21 (Townsend). Mr. Townsend summarized the documents in this database in GX4. June 10, 2014, Tr. 148:5-16 (Townsend). The Ko-resko Defendants never produced this electronic database to the DOL, and the IF only produced a copy of the more than 60,000 documents contained in this database about a month before trial. June 9, 2014, Tr. 27:22-28:25 (Sweeting).
24. The dates listed under the column “Adoption Date” on GX4 are the dates that the employer signed the adoption document. June 10, 2014, Tr. 151:12-151:15 (Townsend).
25. The adoption agreements established a plan in the name of the adopting employer, as noted on the first page of each adoption agreement. See, e.g., GX1; GXlal2 at JJKDOL051424; GXlal7 at JJKDOL229925; see also June 9, 2014, Tr. 25:10-25:17 (Sweeting). The DOL listed the name found on the first page of the adoption agreement as the name of the plan in GX1. June 9, 2014, Tr. 29:20-30:7 (Sweeting).
26. The adoption agreements often contained John Koresko’s signature. See, e.g., GXlal at JJKDOL129953; GXla5 at JJKDOL131461; June 9, 2014, Tr. 29:12-29:19; 32:3-32:11 (Sweeting).
27. PennMont issued Summary Plan Descriptions (“SPD’s”) to employers, on behalf of their Plans, and encouraged the employers to provide the SPDs to their employees. GX1 (column “Summary Plan Descriptions”); June 9, 2014, Tr. 32:12-32:20; GX176 at 34:6-34:18 (Bonney Dep., July 30, 2014). The language in the body of each of the SPDs was the same. June 9, 2014, Tr. 33:3-33:14. The SPDs reviewed by the DOL investigators all con *318 tained an identical Section 13, which was headed as ‘TOUR RIGHTS UNDER THE PLAN.” June 9, 2014, Tr. 34:2-34:9. This section stated that “[t]he Plan is covered by the Employee Retirement Income Security Act- of 1974 (‘ERISA’) which was designed to protect employees’ rights under benefit plans.” See, e.g., GXlal at JJKDOL129762 (Section 13 of the SPD for Anthem Medical Management Voluntary Employee’s Beneficiary Association Health and Welfare Plan); GXla2 at JJKB3690 (Section 13 of SPD for the B & L Sheet Metal Roofing, Inc. Voluntary Employees’ Beneficiary Association Health and Welfare Benefit Plan); GXla7 at JJKDOL246320 (Section 13 of the SPD for Classic Design, Incorporated Voluntary Employees’ Beneficiary Association Health and Welfare Benefit Plan). Of the 132 plans listed on GX1, the DOL located an SPD for all but 19 plans. 29
b. Plan Benefits and Benefit Adjudication
28.The adoption agreements signed by the employers had uniform language at Section 5 establishing benefits. The agreements differed mainly in the name of the company and the signature line. June 9, 2014, Tr. 31:20-32:2 (Sweeting). The employers chose the benefits that they wished to make available to their employees and memorialized them in the relevant adoption agreement. JJKDOL129952; JJKDOL125108; JJKDOL215884; JJKDOL052988; See, e.g., GXlal at GXla4 at GXla8 at GXlal3 at GXlal5 at JJKDOL11435; see also June 9, 2014, Tr. 16:9-16:12.
29. The employer established the benefits available to employees in Section 5.01 of the adoption agreement. See, e.g., GXla8 at JJKB003638, JJKDOL215884 (life benefits); GXlall at JJKDOL050647 (life benefits); GXlal5 at JJKDOL111435-111438 (life benefits and severance); GXlal9 at JJKDOL239372 (life benefits); GXla25 at JJKDOL242174 (life benefits).
30. The plan documents establishing and governing the employer’s plan set up a mechanism for adjudicating benefits. The Master Plan Document adopted by each employer through its adoption agreement sets forth at Section 5.06 the “Claim Procedure” to be followed upon a participant’s death, and it sets forth at Section 5.07 a “Claims Review Procedure” for employees or beneficiaries who have been denied a benefit. GX47 at JJKDOL025253-025254. The plan documents further state in Section 6.03 that the administrator shall assume all duties of the committee- referenced in Section 5.06 and 5.07. GX47 at JJKDOL025255. The plan documents thus set up a claims procedure for the adjudication of claims by PennMont, the Plan Administrator.
c. Plan Participants
31. Section 3 of the Master Plan Document sets forth eligibility requirements for participation. GX47 at JJKDOL025249-025250. Each Plan’s adoption agreement also sets forth that particular Plan’s eligibility requirements. See, e.g., GXlal6 at JJKDOL244387; GXlal8 at JJKDOL062654; GXla20 at JJKDOL237218. Every Plan has a number of months of service required before *319 someone could become eligible for participation, from zero to thirty-six months. June 10, 2014, Tr. 165:8-165:10 (Townsend).
32. Every participation agreement signed by participating employees contain the following language, or similar language: “The undersigned employee hereby agrees to participate in the Employer’s Welfare Benefit Plan, adopted under the Regional Employer’s Assurance Leagues (‘REAL’) Voluntary Employees’ Beneficiary Association (‘VEBA’) plan and trust.” See, e.g., GXlal4 at JJKDOL112765; GXla21 at JJKDOL220731, 220774; GXla26 at JJKDOL082120, 082122, 082123, 082125, 082136. Participation agreements demonstrate which individual employees elected to participate and receive benefits under the arrangement. June 9, 2014, Tr. 34:22-34:25 (Sweeting). The DOL summarized the participation agreements for each Plan in GX1 by listing the name of each employee who signed a participation agreement under the column “Participation Agreement,” with the date that the participation agreement was signed next to the person’s name.' June 9, 2014, Tr. 35:1-35:10 (Sweeting).
33. Larry Townsend entered the name of each participant and the date that he or she signed the participation agreement in the database he maintained for PennMont. June 10, 2014, Tr. 143:23-144:4 (Townsend). All persons listed in the column “Last Name Insured” for the Plans in GX4 had forwarded signed participation agreements to PennMont, which were received by PennMont on the date listed under the column “Part. Agreement Received.” June 10, 2014, Tr. 154:10-154:16 (Townsend).
d. Plan Funding
34. Employers wrote checks payable to the Trusts on behalf of the Plans. See, e.g., GXlal at JJKDOL129975, 129981 (checks written by Anthem Medical Management to “COMMERCE BANK FBO REAL VEBA TRUST”); GXla6 at PNMNT8000, PNMNT8003 (checks- written by Coast to Coast Computer Products, Inc. to “Community Trust Company, Trustee”); GXla7 at JJKDOL245953 (bank check issued to “First Union Bank N.A. Trustee FBO Classic Design W.B.P.”). The DOL summarized checks written by employers to the Trust under the column “Check (From ER to TRUST)” in GX1. June 9, 2014, Tr. 26:9-26:16 (Sweeting).
35. The Trust wrote checks to pur-' chase insurance in the names of the Plans’ participants. See, e.g., GXlal at JJKDOL130034 (check written from CTC to New York Life, with heading “Account H0000 REAL VEBA.... JOHN CROU-SHORE POLICY”); GXla9 at JJKDOL015140 (check written from Penn-Mont VEBA Escrow to Southland Life Insurance Company, with memo line “Technocean, WBP”). The DOL accurately summarized the checks written by the Trusts to various insurance carriers for policies insuring the lives of participants under the column “Check (From TRUST to INS CARRIER)” on GX1. June 9, 2014, Tr. 26:17-26:22 (Sweeting).
e. Insurance Policies Issued in the Names of Plan Participants
36. PennMont sent “year-end” letters to employers, typically in December. These letters were prepared by PennMont, signed off by John Koresko, and sent to employers in order to give them information regarding census forms that needed to be completed and sent back to PennMont and to bill the employers for administrative and trustee fees. June 9, 2014, Tr. 49:23-50:5 (Sweeting); June 10, 2014, Tr. 145:4-145:6 (Townsend); GX176 at 38:12-38:16 (Bonney Dep., July 30, 2014); see also GXlalO at JJKDOL061707, 061729, 191028; GXlal9 at JJKDOL184693, *320 239129, 239130, JJKB00820, 00831; GXla27 at JJKDOL058424, 058862, 186821.
37. PennMont attached “Taxable Economic Benefits” forms (“TEB’s”) or “PS-58” forms to these year-end letters. June 10, 2014 167:17-167:24 (Townsend). The TEBs contain policy numbers for policies issued in the names of participants. June 10, 2014, Tr. 174:19-175:24. The policy numbers and names of insured listed in the TEBs were based on the information stored in the database maintained by PennMont in the course of PennMont’s business of administering the Plans. June 10, 2014, Tr. 168:3-168:25 (Townsend); GX176 at 40:22-41:4 (Bonney Dep., July 30, 2014); see also June 9, 2014, Tr. 51:12— 52:1 (Sweeting).
f.Census Forms
38. PennMont forwarded “census forms” to employers participating in the REAL VEBA and SEWBPT. Upon adoption of the arrangement, PennMont submitted an installation audit that explained to the employer that PennMont would request census data twice a year regarding the employer’s employees. Sept. 9, 2009, Hr’g Tr. At 74:8-74:16 (Bonney). The purpose of this census was to verify that the employer was complying with the arrangement and that employees were not being discriminated against or dropped from coverage if they were entitled to a death benefit. Id.
39. The census form is a report from the employer that lists the employees and all of their critical information, such as a Social Security number, date of birth, date of hire, salary, and whether the employee is active or not, or whether the employee had been terminated during that period. June 10, 2014, Tr. 144:13-144:18 (Townsend). The employer also filled out each participant’s percentage of ownership of the employer on the census forms. June 10, 2014, Tr. 146:12-146:22 (Townsend).
40. Mr. Townsend assisted in mailing out blank census forms to employers as a part of his duties. June 10, 2014, Tr. 144:24-145:11 (Townsend). When employers returned completed census forms, PennMont used the information in the returned census forms, including percentage of ownership for each participant, in the course of its business. Id. at 144:24-147:4; 155:6-155:18 (Townsend).
g. Participating Employers
41. As of 2014, almost 99% of the participating employers were S corporations. GX175 at 43:18-43:22 (J. Koresko Dep., Jan. 8, 2014); Sept. 9, 2009, P.I. Hr’g Tr. At 74:8-74:16 (Bonney). Most of the companies listed on GX1 are corporations, as indicated by the suffix of the company name. See GX1 (shaded box containing company name). The majority of the companies listed in GX4 are either S or C corporations. See GX4 (column “Company Type”).
h. Non-Owner Employees
42. The Plans listed on GX1 fall into one of two categories. In the first category, the sponsoring employer has a 100% owner, or an opposite sex couple with the same last name who jointly owns 100% of the company, and the plan has participants other than the owner or owners as described above. See, e.g., GX1 (listing under Central Georgia Cardiology, LLC, Mirza Ahmed as 100% owner and eleven other participants); id. (listing under Cle-burne Medical Clinic, Inc., Igor Bidikov as 100% owner, Tatiana Bidikov, and ten other participants); id. (listing under Mario Magcalas, MD PA, Mario Magcalas as 100% owner and five other participants).
43. In the second category, the sponsoring employer has multiple owners beyond a 100% owner or a couple who jointly *321 owns 100% of the company. See, e.g., GXI (listing under Advanced Dental Consulting, Inc., Bryan Spilmon as 2% owner, Diane Spilmon as 2% owner, and no additional participants); id. (listing under CSI Management Company, Inc., Michael Kern as 79% owner, tMaureen Evans as 3% owner, and additional participants); id. (listing under Peveto Companies, Freda Lynn Ahlstrom as 33% owner, David Peveto as 33% owner, Johnnie Peveto III as 33% owner, Johnnie Peveto Jr. as 1% owner, and no additional participants).
44. GXI contains only those plans which had a non-owner or partial owner participants. Only those TEBs that list non-owner employees were included in the column “Taxable Economic Benefit” on GXI. The DOL investigators identified those TEBs that listed more than one individual, and those additional individuals were non-owner employees. GXI contains those TEBs that showed more than one person participating in the arrangement, and whether those additional people were employees. The non-owner employees on the TEBs also have insurance policies issued under their names. June 9, 2014, Tr. 23:5-24:8 (Sweeting).
45. Listed under the columns “Census (Signed)” and “Census (Unsigned)” on GXI are census forms that include at least one non-owner or partial owner employee. The DOL used the census forms to ensure that those individuals listed on GXI as employees were also listed with a participation agreement, either on the TEB form or with an insurance policy. The census forms show whether those individuals have any ownership interest in the company. June 9, 2014, Tr. 37:18-40:5, 45:11-45:18 (Sweeting).
46. The column “Reported Ownership %” in GX4 summarizes the ownership stake that each participant held in its sponsoring employer as represented on the census forms maintained by PennMont. June 10, 2014, Tr. 155:10-155:18 (Townsend).
47.Based on the column “Reported Ownership %” in GX4, twenty-four plans have only one participant, with that participant being a 100% owner:
1) 2-H Enterprises, Inc. Welfare Benefit Plan
2) 8103 Inc. Welfare Benefit Plan
3) Active Fire Sprinkler Corporation Welfare Benefit Plan
4) Altissimus, . Inc. Welfare Benefit Plan
5) Ascent Resources Corporation Welfare Benefit Plan
6) Compu-Site Technologies, Inc. Welfare Benefit Plan
7) Flagship Development West, LLC Welfare Benefit Plan
8) Florida Super Site Welfare Benefit Plan
9) Gaspari Nutrition, Inc. Welfare Benefit Plan
10) George G. Wooten, Jr., MGT Co., Inc. Welfare Benefit Plan
11) J. Richard Cox, Attorney at Law, P.C. Welfare Benefit Plan
12) JKH Management, Inc. Welfare Benefit Plan
13) John B. McKinnon, III, P.C. Welfare Benefit Plan
14) Jose Crespo, M.D., P.A. Welfare Benefit Plan
15) Landair Wireless, LTD (A) Welfare Benefit Plan
16) Manellnie, Inc. Welfare Benefit Plan
17) Meritt Diversified Enterprises, Inc. Welfare Benefit Plan
18) Och Consulting LLC Welfare Benefit Plan
*322 19) Peter W Moran PhD PC Welfare Benefit Plan
20) R & D Enterprises, Inc. Welfare Benefit Plan
21) SWL Builders, Inc. Welfare Benefit Plan
22) The Blazer Corporation Welfare Benefit Plan
23) The Montgomery Co., Inc. Welfare Benefit Plan
24) Wadie Alkhouri, MD, Inc. Welfare Benefit Plan
48. Based on the column “Reported Ownership %” in GX4, twenty-five plans have only two participants; those participants have the same last name and jointly own 100% of the company:
1) Alexander Management, Inc. Welfare Benefit Plan
2) Baisch-Harris Enterprises, LTD. Welfare Benefit Plan
3) Boyle Enterprises, Inc Welfare Benefit Plan
4) BTB Newman Enterprises, Inc Welfare Benefit Plan
5) Cairn Management Corporation Welfare Benefit Plan
6) Charles J. Meakin, Inc. Welfare Benefit Plan
7) D & V Investments, Inc. Welfare Benefit Plan
8) Del Norte Homecare, Inc. Welfare Benefit Plan
9) DIMA, Inc. Welfare Benefit Plan
10) Ellertson Family, Inc. Welfare Benefit Plan
11) Energy Alternatives Studies, Inc. Welfare Benefit Plan
12) G & R Enterprises, Inc. Welfare Benefit Plan
13) Gleason Management Co., Inc. Welfare Benefit Plan
14) Hilow Corporation Welfare Benefit Plan
15) J.M. Hill & Associates, Inc. Welfare Benefit Plan
16) K & G Management, Inc. Welfare Benefit Plan
17) M. & E. Zenni, Inc. Welfare Benefit Plan
18) Midway Adjusting, Inc. Welfare Benefit Plan
19) Pineville Chiropractiv, P.A. Welfare Benefit Plan
20) Raffinan & Raffinan, M.D., P.A. Welfare Benefit Plan '
21) Ram Technical Services Inc Welfare Benefit Plan
22) Rocky, Inc. Welfare Benefit Plan
23) Snow Mountain Management Welfare Benefit Plan
24) TA Sanders, LLC Welfare Benefit Plan
25) Techops Services, Inc. Welfare Benefit Plan
49. Based on the column “Reported Ownership %” in GX4, sixty-five plans have only two participants; those participants have the same last name and one of the participants is the 100% owner of the company:
1) AAJ Associate, Inc Welfare Benefit Plan
2) Allamo Ventures, Inc. Welfare Benefit Plan
3) Allen’s Telephone and TV Service, Inc. Welfare Benefit Plan
4) BJH Management Corporation Welfare Benefit Plan
5) Brigman Investments, L.L.C. Welfare Benefit Plan
6) Buggie Ventures, Inc. Welfare Benefit Plan
*323 7) C. Andrew Childers, P.C. Welfare Benefit Plan
8) Cavaliere Professional, P.C. Welfare Benefit Plan
9) Caw Imaging, PC Welfare Benefit Plan
10) Cedar Obstetrics & Gynecological Associates, P.C. Welfare Benefit Plan
11) Central Georgia Cardioeare, P.C. Welfare Benefit Plan
12) Central Georgia Cardiology Management P.C. Welfare Benefit Plan
13) Chicago Energy Exchange of Chicago, Inc. Welfare Benefit Plan
14) Children’s Neurological Associates, Inc. Welfare Benefit Plan
15) Collins Management, Inc. Welfare Benefit Plan
16) Coolidge Management Corp. Welfare Benefit Plan
17) Core Contracting, Inc. Welfare Benefit Plan
18) Daniel R. Fagan and Associates, P.C. Welfare Benefit Plan
19) Dick’s Double D., Inc. Welfare Benefit Plan
20) Dr. Eric Katz, P.C. Welfare Benefit Plan
21) Dynamic Management Group, Inc. Welfare Benefit Plan
22) East Coast Transport, Inc. Welfare Benefit Plan
23) EBJ Management, Inc. Welfare Benefit Plan
24) EMN Paradox Welfare Benefit Plan
25) EN SCI, Inc. Welfare Benefit Plan
26) Eseen, Inc. Welfare Benefit Plan
27) Fico Medical, Inc. Welfare Benefit Plan
28) Gerald G. Angermeier, P.C. Welfare Benefit Plan
29) Grace P. Waldrop Consulting, Inc. Welfare Benefit Plan
30) Imagine Consultants,- Inc. Welfare Benefit Plan
31) Jacole Management, Inc. Welfare Benefit Plan
32) James M. LaRose, D.O. & Associates Welfare Benefit Plan
33) Joe Matthews, Anesthesiologist, MD., PC Welfare Benefit Plan
34) John LeDonne, MD Welfare Benefit Plan • -
35) John Roland Enterprises, Inc. Welfare Benefit Plan
36) Johnson City Health & Fitness Center, Inc. Welfare Benefit Plan
37) Kenneth Fowler Drywall, Inc. Welfare Benefit Plan
38) Law Offices of Duane Kumagai, P.C. Welfare Benefit Plan
39) Law Offices of Richard Rueda, P.C. Welfare Benefit Plan
40) Lawrence J. Eisenberg Welfare Benefit Plan
41) Linker Marketing Company, Inc. Welfare Benefit Plan
42) LM Financial Group, Inc. Welfare Benefit Plan
43) M.A.L. Enterprises, Inc. Welfare Benefit Plan
44) Mark J. Paget, Inc. Welfare Benefit Plan
45) Mary-Theresa Popa, P.C. Welfare Benefit Plan
46) Masted Corporation Welfare Benefit Plan
47) MB Textile Consultants, Inc. Welfare Benefit Plan
48) McCarthy Management Services Welfare Benefit Plan
49) Mehulauto, Inc. Welfare Benefit Plan
*324 50) Mike Sill Agency, Inc. Welfare Benefit Plan
51) Network Outfitters Welfare Benefit Plan
52) PCR, Inc. Welfare Benefit Plan
53) Paresh Shah, MD, PA Welfare Benefit Plan
54) Parker’s Drive In, Inc. Welfare Benefit Plan
55) Perfume Center of America Welfare Benefit Plan
56) Professional Marketing Systems Welfare Benefit Plan
57) Rex Leasing of NC Welfare Benefit Plan
58) Robert Ridge Land Company, Inc. Welfare Benefit Plan
59) Roy Skaff, Inc. Welfare Benefit Plan
60) Sydney Tyson, MD, LLC Welfare Benefit Plan
61) Terry S. Wood, M.S., D.D.S., P.C. Welfare Benefit Plan
62) The Landings of Sarasota, Inc. Welfare Benefit Plan
63) Thomson Financial & Tax Services, Inc. Welfare Benefit Plan
64) TNL Company, Inc. Welfare Benefit Plan
65) TYC Management, Inc. Welfare Benefit Plan
50. The 419 remaining plans in GX4 have participants other than those described above:
1) 2001 Capital Corporation Welfare Benefit Plan
2) 2001 Enterprises Management Corp. Welfare Benefit Plan
3) AAA Bookkeeping & Tax, Inc. Welfare Benefit Plan
4) AAF Management Group, Inc. Welfare Benefit Plan
5) Abner Creek Family Medicine, Inc. Welfare Benefit Plan
6) Access Communications, Inc. Welfare Benefit Plan
7) Act Management Co. Welfare Benefit Plan
8) Adams, Inc. Welfare Benefit Plan
9) Advanced Dental Consulting, Inc. Welfare Benefit Plan
10) Advanced Plastic System, Inc. Welfare Benefit Plan
11) Aero-Med LTD. Welfare Benefit Plan
12) Affordable Luxury Homes, Inc. Welfare Benefit Plan
13) Allen Park Agency, Inc. Welfare Benefit Plan
14) Allergy & Asthma Consultants, P.C. Welfare Benefit Plan
15) Altered Image Welfare Benefit Plan
16) Amaro Management Corp. Welfare Benefit Plan
17) Ambience Landscape Corporation Welfare Benefit Plan
18) American Packaging Group, Inc. Welfare Benefit Plan
19) Angela Leung, DDS, P.C. Welfare Benefit Plan
20) Annette E. Merlino, DMD, Inc. Welfare Benefit Plan
21) Anthem Medical Management Welfare Benefit Plan
22) Appliance Parts Distributors, Inc. Welfare Benefit Plan
23) Arch Dental Associates, P.C. Welfare Benefit Plan
24) Arizona Otolaryngology Center, P.C. Welfare Benefit Plan
25) A-Tech Concrete Co. Welfare Benefit Plan
26) Atlantic Body Shop, Inc. Welfare Benefit Plan
*325 27) Augustine B. Jimenez, III, P.C. Welfare Benefit Plan
28) Aztec Steel, Inc. Welfare Benefit Plan
29) B’The Best, Inc. Welfare Benefit Plan
30) B & L Sheet Metal & Roofing, Inc. Welfare Benefit Plan
31) B2, Inc. Welfare Benefit Plan
32) Back & Neck Rehab Center, P.C. Welfare Benefit Plan
33) Baker Management Company Welfare Benefit Plan
34) Barry Diamond, P.A. Welfare Benefit Plan
35) Baseline Holdings, Inc. Welfare Benefit Plan
36) Baxter Management Co., Inc. Welfare Benefit Plan
37) BBD Car, Inc. Welfare Benefit Plan
38) Ben Franklin Management, Inc. Welfare Benefit Plan
39) Ben-Lin Associates, LTD. Welfare Benefit Plan
40) Beth Blanton Enterprises, Inc. Welfare Benefit Plan
41) Blue Moon Design & Display, LTD Welfare Benefit Plan
42) Bogatay Construction, Inc. Welfare Benefit Plan
43) Braddock Construction, Inc. Welfare Benefit Plan
44) Bradford Construction, Inc. Welfare Benefit Plan
45) Bradley J. Brown, D.D.S. Welfare Benefit Plan
46) Briarpatch, Inc. Welfare Benefit Plan
47) Brigham City Arthritis Clinic P.C. Welfare Benefit Plan
48) Brite Management, Inc. Welfare Benefit Plan
49) Brown & Luke Contracting, Inc. Welfare Benefit Plan
50) BPS Solutions, Inc. Welfare Benefit Plan
51) Buckner Crane & Rigging, Inc. Welfare Benefit Plan
52) Business Ventures Unlimited Welfare Benefit Plan
53) C & J Wholesale Floral Services, Inc. Welfare Benefit Plan
54) C & LF Management Company, Inc. Welfare Benefit Plan
55) Capital Alliance Welfare Benefit Plan
56) Capital Messengers, Inc. Welfare Benefit Plan
57) Cardinal Anesthesia & Pain Management, PA Welfare Benefit Plan
58) Carlisle Insurance Agency, Inc. Welfare Benefit Plan
59) Carolina Flooring and Carpets, Inc. Welfare Benefit Plan
60) Carolina Seafood, Inc. Welfare Benefit Plan
61) Carson’s Steak Warehouse, Inc. Welfare Benefit Plan
62) Carter Electric Management Company, Inc. Welfare Benefit Plan
63) Caste Area Chiropractic, Inc. Welfare Benefit Plan
64) Central Georgia Cardiology, LLC Welfare Benefit Plan
65) Central Georgia Heart Institute, LLC Welfare Benefit Plan
66) Cetylite Industries, Inc. Welfare Benefit Plan
67) Cevene Care Clinic Welfare Benefit Plan
68) Charles Parsons & Associates, CHTD, Welfare Benefit Plan
69) Chin Management, Inc. Welfare Benefit Plan
*326 70) Christopher Lyden, D.C., P.C. Welfare Benefit Plan
71) Circle City Heat Treating, Inc. Welfare Benefit Plan
72) Classic Design, Incorporated Welfare Benefit Plan
73) Cleburne Medical Clinic Welfare Benefit Plan
74) Coast to Coast Computer Products, Inc. Welfare Benefit Plan
75) Coldwater Management Co., Inc. Welfare Benefit Plan
76) Columbia Data Products, Inc. Welfare Benefit Plan
77) Comfort Engineers, Inc. Welfare Benefit Plan
78) Commercial Masonry Welfare Benefit Plan
79) Complete Medical Care Service of NY, P.C. Welfare Benefit Plan
80) Composite Resources, Inc Welfare Benefit Plan
81) Concrete Structures, Inc. Welfare Benefit Plan
82) Consumer Trend Welfare Benefit Plan
83) Cook Management, Inc. Welfare Benefit Plan
84) Cornerstone Masonry, Inc. Welfare Benefit Plan
85) Countryside Builders, LLC Welfare Benefit Plan
86) Covert Management, Inc. Welfare Benefit Plan
87) Crandall Investments Welfare Benefit Plan
88) Crimson Cardinal, Inc. Welfare Benefit Plan
89) Crown Mechanical, Inc. Welfare Benefit Plan
90) CSI Management Company, Inc. Welfare Benefit Plan
91) Cuomo Construction Co, Inc. Welfare Benefit Plan
92) D.M. Records, Inc. Welfare Benefit Plan
93) Dan Ho Professional Chiropractic Corp. Welfare Benefit Plan'
94) Dan Madison & Co., Inc. Welfare Benefit Plan
95) Dansko, Inc. Welfare Benefit Plan
96) Datalink Electronics, Inc. Welfare Benefit Plan
97) David C. Spokane Orthodontic Assoc., P.C. Welfare Benefit Plan
98) David P. Novak, Chartered Welfare Benefit Plan
99) Dayton Penn Associates, Inc. Welfare Benefit Plan
100) Decor Coordinates, Inc. Welfare Benefit Plan
101) Delaware County Urological Associates, LTD. Welfare Benefit Plan
102) Delchester Professional Services Welfare Benefit Plan
103) Device Engineering Incorporated Welfare Benefit Plan
104) Dimensions Architects International Welfare Benefit Plan
105) DK Merk Construction, Co. Welfare Benefit Plan
106) DMK Marketing Welfare Benefit Plan
107) Domenic M. Castellano, D.D.S., P.A. Welfare Benefit Plan
108) Dorothy P. Elkner, Inc. Welfare Benefit Plan
109) Double Eagle Nutrition, Inc. Welfare Benefit Plan •
110) Dow Management Corporation Welfare Benefit Plan
111) Dr. Kevin Kelly, M.D., P.C. Welfare Benefit Plan
*327 112) Dr. Philip Baldeo, Medical Services, P.C. Welfare Benefit Plan
113) Dr. Samuel M. Sepuya MD Welfare Benefit Plan
114) Duke’s Landscape Management, Inc. Welfare Benefit Plan
115) DVB Management, Inc. Welfare Benefit Plan
116) Dynomark, Inc. Welfare Benefit Plan
117) E. Robert Fussel Welfare Benefit Plan
118) Eagle Managed Subcontractors Welfare Benefit Plan
119) Earth Shelter Developers, A California Corporation Welfare Benefit Plan
120) Ed Lloyd, PA Welfare Benefit Plan
121) Eisler Nurseries, Inc. Welfare Benefit Plan
122) Elam Enterprises, Inc. Welfare Benefit Plan
123) Eldercare Home Pharmacy, LLC Welfare Benefit Plan
124) Ellis Landscape, Inc. Welfare Benefit Plan
125) Elm Street Group Inc. Welfare Benefit Plan
126) Ema, Inc. Welfare Benefit Plan
127) Emergency Care Physician Services, LTD Welfare Benefit Plan
128) Emergency Medicine Resources Welfare Benefit Plan
129) Engineered Systems & Products Welfare Benefit Plan
130) Engineering Manufacturing Services Welfare Benefit Plan
131) Enrico F. Verrico Welfare Benefit Plan
132) ENT & Facial Plastic Surgery Welfare Benefit Plan
133) ERA Trend Setter Realty, Inc. Welfare Benefit Plan
134) EuroHomes, Inc. Welfare Benefit Plan
135) Everything for Love.Com Inc. Welfare Benefit Plan
136) Excelerated Management, Inc. Welfare Benefit Plan
137) Fairshare, Inc. Welfare Benefit Plan
138) First Street Grille Management Co., Inc. Welfare Benefit Plan
139) Flagship Management, LLC Welfare Benefit Plan
140) Fleming Consulting, Inc. Welfare Benefit Plan
141) Foot & Leg Centers of GA, PC Welfare Benefit Plan
142) Fremont Millwork Co. Welfare Benefit Plan
143) Frog Pond Turf Management, Inc. Welfare Benefit Plan
144) Gail F. Schwartz, M.D., P.A. Welfare Benefit Plan
145) Gary L. Murray, M.D., P.C. Welfare Benefit Plan
146) George R. Brezina, Jr., P.A. Welfare Benefit Plan
147) Georgia Cardiology Center, LLC Welfare Benefit Plan
148) Georgia Dermasurgery Centers, Inc. Welfare Benefit Plan
149) GM Kuhlman, Inc. Welfare Benefit Plan
150) Gold & Vilim Welfare Benefit Plan
151) GP Construction Services Welfare Benefit Plan
152) Graham-Malone, Inc. Welfare Benefit, Plan
153) Greenwood Financial Services, Inc. Welfare Benefit Plan
*328 154) Griffin Land Surveying Co., Inc. Welfare Benefit Plan
155) H & H Leasing, Inc. Welfare Benefit Plan
156) Haddon Orthodontics, P.C. Welfare Benefit Plan
157) Hank Bailey Financial Services, Inc. Welfare Benefit Plan
158) Harrell-Fish, Inc. Welfare Benefit Plan
159) Harry H. Monokian, D.M.D., P.A. Welfare Benefit Plan
160) Harvey A. Kalan, M.D., Inc. Welfare Benefit Plan
161) Harvey Passes, DDS, P.C. Welfare Benefit Plan
162) Hazlet Pharmacy Welfare Benefit Plan
163) HB International Group, Inc. Welfare Benefit Plan
164) Heart Treasures, Inc. Welfare Benefit Plan
165) Henry Norris & Associates, Inc. Welfare Benefit Plan
166) Hills Family Chiropractic Officers, P.C. Welfare Benefit Plan
167) Horizon Tile & Carpet, Inc. Welfare Benefit Plan
168) Horn Electric Welfare Benefit Plan
169) Howard Greils, M.D., Inc. Welfare Benefit Plan
170) Hudson Phamatech, Inc. Welfare Benefit Plan
171) Hyannis Marina, Inc. Welfare Benefit Plan
172) ICCO Management Corp. Welfare Benefit Plan
178)Inderjit Singh, M.D., P.C. Welfare Benefit Plan
174)Indu Garg, Inc. Welfare Benefit Plan
175) Innovative Design, Inc. Welfare Benefit Plan
176) International Institute of Trading Mastery, Inc. Welfare Benefit Plan
177) International Travel Consultants, Inc. Welfare Benefit Plan
178) IQ Systems, Inc. Welfare Benefit Plan
179) J. Blakslee International Welfare Benefit Plan
180) J.R. Computech, Inc. Welfare Benefit Plan
181) Jagjit Singh, M.D., Inc. Welfare Benefit Plan
182) Jaloudi & Lee, P.C. Welfare Benefit Plan
183) James Barrie Publishing, Inc. Welfare Benefit Plan
184) Jay Steer, CPA Welfare Benefit Plan
185) JB Roof & Associates, Inc. Welfare Benefit Plan
186) Jeff Brown Enterprises, Inc. Welfare Benefit Plan
187) Jeffrey L. Lipkowitz, M.D., P.A. Welfare Benefit Plan
188) Jen Management, Inc. Welfare Benefit Plan
189) Jerome Caruso Design International, Inc. Welfare Benefit Plan
190) JES Realty Associates, LLC Welfare Benefit Plan
191) JLJ Management Co. Welfare Benefit Plan
192) JLNC, Inc. Welfare Benefit Plan
193) JMS Management, Inc. Welfare Benefit Plan
194) Joe Rizzi & Sons Construction, Inc. Welfare Benefit Plan
195) John M. Bourlon, P.A., Inc. Welfare Benefit Plan
*329 196) John M. Porter, D.D.S., Inc. Welfare Benefit Plan
197) John Sharrat Associates, Inc. Welfare Benefit Plan
198) Johnson*Graham*Malone Welfare Benefit Plan
199) Jose Aun, M.D., P.A. Welfare Benefit Plan
200) Joseph P. Iaria Real Estate Welfare Benefit Plan
201) Joyce & Associates Construction, Inc. Welfare Benefit Plan
202) Kaplan & Tyson, LLC Welfare Benefit Plan
203) KBL Management, Inc. Welfare Benefit Plan
204) Kenneth B. Lewis, D.D.S., P.A. Welfare Benefit Plan
205) Kerry Investments, Inc. Welfare Benefit Plan
206) Kin W. Lui, M.D. Welfare Benefit Plan
207) Kinetics Sales, Inc. Welfare Benefit Plan
208) Kline, Scott, Visco Commercial Real Estate, Inc. Welfare Benefit Plan
209) KMR Rehabilitation Consultants, Inc. Welfare Benefit Plan
210) KP Builders, Inc. Welfare Benefit Plan
211) Krengel Painting Co. Welfare Benefit Plan
212) Krishnan S. Kumar, M.D., P.C. Welfare Benefit Plan
213) Kushco Florist, Inc. Welfare Benefit Plan
214) L.T. Management, Inc. Welfare Benefit Plan
215) L.A. Downey & Son, Inc. Welfare Benefit Plan
216) L.T. Designs, Inc. Welfare Benefit Plan
217) Lafayette Cancer Care, PC Welfare Benefit Plan
218) Lafayette Compass, Inc. Welfare Benefit Plan
219) Landair Wireless, LTD (B) Welfare Benefit Plan
220) Landair Wireless, LTD (-C) Welfare Benefit Plan
221) Law Offices of Eugene L. Weisbein Welfare Benefit Plan
222) Law Offices of Gregory P. Chock-lett, J.D. Welfare Benefit Plan
223) Law Offices of Michael W. Lucan-sky, P.A. Welfare Benefit Plan
224) Lawrence Orthopaedics Welfare Benefit Plan
225) Leon Brothers Farm Welfare Benefit Plan
226) LGS Specialty Sales, LTD Welfare Benefit Plan
227) Little Joes d/b/a Edison Motors Welfare Benefit Plan
228) LJK Enterprises, Inc. d/b/a Larry Johnson Insurance Welfare Benefit Plan
229) Lyle J. Micheli, M.D., P.C. Welfare Benefit Plan
230) M & D Roebuck, Inc. Welfare Benefit Plan
231) M.J. Hoag Contracting, Inc. Welfare Benefit Plan
232) Makasu, Inc. Welfare Benefit Plan
233) Management Recruiters of Melbourne, Inc. Welfare Benefit Plan
234) Manchester Partners, LTD. Welfare Benefit Plan
235)- Mario Magcalas, M.D., P.A. Welfare Benefit Plan
236) Marketing Systems Group, Inc. Welfare Benefit Plan
*330 237) Martin Wier, Inc. Welfare Benefit Plan
238) Mary Ellen Reding, DDS, PC Welfare Benefit Plan
239) Masco Construction Co., Inc. Welfare Benefit Plan
240) Max I. Lilling, M.D., P.C. Welfare Benefit Plan
241) MBA Management Company, Inc. Welfare Benefit Plan
242) MBT Management, Inc. Welfare Benefit Plan
243) McReg Industries, Inc. Welfare Benefit Plan
244) Med Group Medical Supplies, Inc. Welfare Benefit Plan
245) Megaco, Inc. Welfare Benefit Plan
246) Mel Stewart Horneé, Inc. Welfare Benefit Plan
247) Metropolitan ENT Welfare Benefit Plan
248) Michael & Co. Interiors Welfare Benefit Plan
249) Michael O’Brien, D.M.D., P.C. Welfare Benefit Plan
250) Michael P. Halpin, M.D. Welfare Benefit Plan
251) Michael Petty Management Company, Inc. Welfare Benefit Plan
252) Michael Sallen, D.O., P.A. Welfare Benefit Plan
253) Mida, Inc. Welfare Benefit Plan
254) Miles V. Schmidt & Assoc., Inc. Welfare Benefit Plan
255) Ming Court Management, Inc. Welfare Benefit Plan
256) Mini Precision Devices, Co., Inc. Welfare Benefit Plan
257) Mistral Management Co., Inc. Welfare Benefit Plan
258) MKBS Management Corporation Welfare Benefit Plan
259) Mojoe’s, Inc. Welfare Benefit Plan
260) Montwood Family Medical Center Welfare Benefit Plan
261) Moran Industries, Inc. Welfare Benefit Plan
262) Morgen & Oswood Construction, Co., Inc. Welfare Benefit Plan
263) Mountain West Helicopters, L.L.C. Welfare Benefit Plan
264) Nautical Marine Welfare Benefit Plan
265) Neil W. McAllister, O.D., P.C. Welfare Benefit Plan
266) New England Finish Systems, Inc. Welfare Benefit Plan
267) New View Gifts & Accessories Ltd. Welfare Benefit Plan
268) New-Bio, Inc. Welfare Benefit Plan
269) Newell Brothers Construction Co., Inc. Welfare Benefit Plan
270) Newell Management Corporation Welfare Benefit Plan
271) Niculae Ciobanu Physician, P.C. Welfare Benefit Plan
272) O. Fayrell Furr, Jr., P.A. Welfare Benefit Plan
273) Oakpoint Management Corp. Welfare Benefit Plan
274) Ogre Holdings, Inc. Welfare Benefit Plan
275) Olouakan Comluct, Inc. Welfare Benefit Plan
276) Olympic Horticultural Products Welfare Benefit Plan
277) Omni Management and Consultants Unlimited, Inc. Welfare Benefit Plan
278) Orange Park Chiropractic Center, P.A. Welfare Benefit .Plan
279) Oxford Circle Family Medicine Welfare Benefit Plan
*331 280) P.D. Patel, MD, P.S.C. Welfare Benefit Plan
281) P.C. Delta Corporation Welfare Benefit Plan
282) P.J. Reddy, M.D., P.A. Welfare Benefit Plan
283) Pace King Corporation Welfare Benefit Plan
284) Pamela K. Erdman, M.D., Inc. Welfare Benefit Plan
285) Pathamerica Resource, Inc. Welfare Benefit Plan
286) Paul J. Corrado, Jr., D.D.S. Welfare Benefit Plan
287) Payne Family Investments, Inc. Welfare Benefit Plan
288) Perry Reding, M.D., P.A. Welfare Benefit Plan
289) Peveto Companies, LTD Welfare Benefit Plan
290) Phoenix Contractors Welfare Benefit Plan
291) Pinto Koff Sales & Marketing Associates, Inc. Welfare Benefit Plan
292) PJP Management Co., Inc. Welfare Benefit Plan
293) Polaris Sales Co., Inc. Welfare Benefit Plan
294) Powercom Electrical Services, Inc. Welfare Benefit-Plan
295) PPRVS, LLC Welfare Benefit Plan
296) Prism Publishing, Inc. Welfare Benefit Plan
297) Progressive Door Corp. Welfare Benefit Plan
298) Progressive Motion, Inc. Welfare Benefit Plan
299) Promotrim International, Inc. Welfare Benefit Plan
300) Proslink, Inc. Welfare Benefit Plan
301) Psychiatry Associates of Cherry Hill, P.A. Welfare Benefit Plan
302) PTL Test Equipment, Inc. Welfare Benefit Plan
303) R.A. Grovenstein, D.C., P.A. Welfare Benefit Plan
304) Radiology Consultants of El Paso, P.A. Welfare Benefit Plan
305) Ralph W. Price, D.D.S., P.C. Welfare Benefit-Plan
306) Ram Pipe & Supply, Inc. Welfare Benefit Plan
307) Rank Technology Corporation Welfare Benefit Plan
308) Ransom Design, Inc. Welfare Benefit Plan
309) Reid, Jones, McRorie & Williams, Mgt. Co., Inc. Welfare Benefit Plan
310) Reno Heating & Air, Inc Welfare Benefit Plan
311) Resource Management, Inc. Welfare Benefit Plan
312) Resource Realizations, Inc. Welfare Benefit Plan
313) Re-Vita Manufacturing Co. Welfare Benefit Plan
314) Rizzo & Associates, Inc. Welfare Benefit Plan
315) RLS II, Inc. Welfare Benefit Plan
316) Robert G. Ostoyich, D.M.D., P.C. Welfare Benefit Plan
317) Robert S. Block Technologies Welfare Benefit Plan
318) ROR Management, Inc. Welfare Benefit Plan
319) Roy N. Gay, M.D., P.C. Welfare Benefit Plan
320) Roy R. Oates, Jr., P.C. Welfare Benefit Plan
321) Royal Johannessen Management Corporation Welfare Benefit Plan
322) RPS & V Corp. Welfare Benefit Plan
*332 323) RSK Management Company, Inc. Welfare Benefit Plan
324) Rukeyser Television, Inc. Welfare Benefit Plan
325) Rushing Management, Inc. Welfare Benefit Plan
326) S & S Salvage, Inc. Welfare Benefit Plan
327) S. Davis Enterprises, Inc. Welfare Benefit Plan
328) S.H. Silver Company, Inc. Welfare Benefit Plan
329) S.T. Mitchell, M.D., Inc. Welfare Benefit Plan
330) Salvucei Masonry Co., Inc. Welfare Benefit Plan
331) Sanjiv Bansal, M.D., P.C. Welfare Benefit Plan
332) Sanjiv Bhatia, DDS, PC Welfare Benefit Plan
333) Sarasota OB/GYN Associates, P.A. Welfare Benefit Plan
334) Saratoga Surgical Specialties, PiC. Welfare Benefit Plan
335) Sarma Behavioral Health Clinic, LLC Welfare Benefit Plan
336) Schauer and Associates, Inc. Welfare Benefit Plan
337) Scientific Systems Company, Inc. Welfare Benefit Plan
338) Scott L. Busch, D.O., P.A. Welfare Benefit Plan
339) Seeders Consulting Welfare Benefit Plan
340) SGK, Inc. Welfare Benefit Plan
341) Shannon Res, Inc. Welfare Benefit Plan
342) Sheffield Distributing Company, Inc. Welfare Benefit Plan
343) Sherasgold Corporation Welfare Benefit Plan
344) Sheree B. Lipkis, M.D., P.C. Welfare Benefit Plan
345) Sidney Charles Markets, Inc. Welfare Benefit Plan
346) SJM Engineering, Inc. Welfare Benefit Plan
347)- Skulls Unlimited International, Inc. Welfare Benefit Plan
348) Smart Inventions Welfare Benefit Plan
349) Smeester Bros., Inc. Welfare Benefit Plan
350) Solloway Enterprises, Inc. Welfare Benefit Plan
351) South Texas Woodmill, Inc. Welfare Benefit Plan
352) Southerland Construction, Inc. Welfare Benefit Plan
353) Southern Dental Laboratory, Inc. Welfare Benefit Plan
354) Southern Insurance Consultants, Inc. Welfare Benefit Plan
355) Spartan Inc. Welfare Benefit Plan
356) Spencer Management, Inc. Welfare Benefit Plan
357) Spicer, Inc. Welfare Benefit Plan
358) Spire Media Corporation Welfare Benefit Plan
359) SPJ Management, Inc. Welfare Benefit Plan
360) Stafford Construction Services, Inc. Welfare Benefit Plan
361) Steven G. Reitan, DDS, LTD Welfare Benefit Plan
362) Steven Locnikar, D.O., P.C. Welfare Benefit Plan
363) Stewart Family Partnership, LLLP Welfare Benefit Plan
364) Stockwell Construction Co., Inc. Welfare Benefit Plan
365) Suketu Nanavati, M.D., P.C. Welfare Benefit Plan
*333 366) Sun City Pediatrics, P.A. Welfare Benefit Plan
367) Sunny D Manufacturing, Inc. Welfare Benefit Plan
368) Superior Bindery, Inc. Welfare Benefit Plan
369) Surgical Specialty Group Welfare Benefit Plan
370) SW OB-GYN Associates, P.A. Welfare Benefit Plan
371) Swan International, Inc. Welfare Benefit Plan
372) Swordfish, Inc. Welfare Benefit Plan
373) Taitronics, Inc. Welfare Benefit Plan
374) TDF Metal Finishing Co., Inc. Welfare Benefit Plan
375) Technocean Welfare Benefit Plan
376) The New Customware Company Welfare Benefit Plan
377) The Quantie Group, LTD. Welfare Benefit Plan
378) The Roberts Group, P.A. Welfare Benefit Plan
379) The Underwood Group, Inc. Welfare Benefit Plan
380) Thomas C. Cochran, M.D., P.C. Welfare Benefit Plan
381) Thomas G. Tadvick, DDS, P.C. Welfare Benefit Plan
382) Thorpe Morieux, Inc. Welfare Benefit Plan
383) Timothy Clark, P.A. Welfare Benefit Plan
384) TMC Enterprises, Inc. Welfare Benefit Plan
385) Tobey Karg Sales Agency, Inc. Welfare Benefit Plan
386) Tower Components Corporation Welfare Benefit Plan
387) Traína Management, Inc. Welfare Benefit Plan
388) Transchem, Inc. Welfare Benefit Plan
389) Trimm, Inc. Welfare Benefit Plan
390) U.E. Systems, Inc. Welfare Benefit Plan
391) Umesh C. Shah, M.D., P.C. Welfare Benefit Plan
392) Uniquities, Inc. Welfare Benefit Plan
393) Urgent Medical Care, Inc. Welfare Benefit Plan
394) Utah CSI, Inc. Welfare Benefit Plan
395) Victoria, Inc. Welfare Benefit Plan
396) Vuaykumar K. Gandhi, M.D., P.A. Welfare Benefit Plan
397) W & A Prichard, LLC Welfare Benefit Plan
398) W. S. Newell, Inc. Welfare Benefit Plan
399) W.S. Associates, Inc. Welfare Benefit Plan
400) Wade Hampton Dental Laboratory, Inc. Welfare Benefit Plan
401) WAJ Consulting Co., Inc. Welfare Benefit Plan
402) Walser, Inc. Welfare Benefit Plan
403) Walter F. Zoller, D.M.D., P.A. Welfare Benefit Plan
404) Walter Umphrey, P.C. Welfare Benefit Plan
405) Wang Electric, Inc. Welfare Benefit Plan
406) Waterloo Contractors, Inc. Welfare Benefit Plan
407) Webb Core, Inc. Welfare Benefit Plan
408) Wella Mena, Inc. Welfare Benefit Plan
*334 409) Wendell J. Courtney, M.D., P.A. Welfare Benefit Plan
410) Whiteside Machine & Repair. Co., Inc. Welfare Benefit Plan
411) Whole Earth Landscaping Design, Inc. Welfare Benefit Plan
412) Wilhelm Enterprises, Inc. Welfare Benefit Plan
413) William Y. Akerman, Jr., D.M.D., P.C. Welfare Benefit Plan
414) Wilshire Palisades Law Group, P.C. Welfare Benefit Plan
415) Winchester Land and Development Corporation Welfare Benefit Plan
416) Winema Electric, Inc." Welfare Benefit Plan
417) Winterton Company Welfare Benefit Plan
418) Women’s Group for Obstetrics and Gynecology Welfare Benefit Plan
419) Wuest Estate Company Welfare Benefit Plan
i. Active Plans
51. Of the Plans listed on GX1, 104 employers submitted census forms in either 2013 or 2014. See GX160. Those 104 Plans are as follows:
1) 8103 Inc. Welfare Benefit Plan
2) Act Management Co. Welfare Benefit Plan
3) Advanced Dental Consulting, Inc. Welfare Benefit Plan
4) Allamo Ventures, Inc. Welfare Benefit Plan
5) Angela Leung, DDS, P.C. Welfare Benefit Plan
6) Annette E. Merlino, DMD, Inc. Welfare Benefit Plan
7) Arch Dental Associates, P.C. Welfare Benefit Plan
8) ‘B’ The Best, Inc. Welfare Benefit Plan
9)Baseline Holdings, Inc. Welfare Benefit Plan
10) Ben-Lin Associates, LTD. Welfare Benefit Plan -
11) Bradley J. Brown, D.D.S. Welfare Benefit Plan
12) Briarpatch, Inc. Welfare Benefit Plan
13) Brigham City Arthritis Clinic P.C. Welfare Benefit Plan
14) Brigman Investments, L.L.C. Welfare Benefit Plan
15) Brite Management, Inc. Welfare Benefit Plan
16) Cavaliere Professional, P.C. Welfare Benefit Plan
17) Cedar Obstetrics & Gynecological Associates, P.C. Welfare Benefit Plan
18) Central Georgia Cardiocare, P.C. Welfare Benefit Plan
19) Central Georgia Cardiology Management, P.C. Welfare Benefit Plan
20) Cetylite Industries, Inc. Welfare Benefit Plan
21) Cleburne Medical Clinic Welfare Benefit Plan
22) Collins Management, Inc. Welfare Benefit Plan
23) Columbia Data Products, Inc. Welfare Benefit Plan
24) Commercial Masonry Welfare Benefit Plan
25) Complete Medical Care Service of NY, P.C. Welfare Benefit Plan
26) Concrete Structures, Inc. Welfare Benefit Plan
27) Covert Management, Inc. Welfare Benefit Plan
28) Crandall Investments Welfare Benefit Plan
*335 29) Datalink Electronics, Inc. Welfare Benefit Plan
30) David P. Novak, Chartered Welfare Benefit Plan
31) Delaware County Ürological Associates, LTD. Welfare Benefit Plan
32) Delchester Professional Services Welfare Benefit Plan
33) Dick’s Double D, Inc. Welfare Benefit Plan
34) DK Merk Construction, Co. Welfare Benefit Plan
35) Dr. Eric Katz, P.C. Welfare Benefit Plan
36) DVB Management, Inc. Welfare Benefit Plan
37) Dynamic Management Group, Inc. Welfare Benefit Plan
38) Earth Shelter Developers, A California Corporation Welfare Benefit Plan
39) Ellertson Family, Inc. Welfare Benefit Plan
40) Emergency Medicine Resources Welfare Benefit Plan
41) Energy Alternatives Studies, Inc. Welfare Benefit Plan
42) Engineering Manufacturing Services Welfare Benefit Plan
43) Gail F. Schwartz, M.D., P.A. Welfare Benefit Plan
44) Gleason Management Co., Inc. Welfare Benefit Plan
45) GP Construction Services Welfare Benefit Plan
46) Grace P. Waldrop Consulting, Inc. Welfare Benefit Plan
47) Graham-Malone, Inc. Welfare Benefit Plan
48) Haddon Orthodontics, P.C. Welfare Benefit Plan
49) Hazlet Pharmacy Welfare Benefit Plan
50) HB International Group, Inc. Welfare Benefit Plan
51) Heart Treasures, Inc. Welfare Benefit Plan
52) Howard Greils, M.D., Inc. Welfare Benefit Plan
53) J.R. Computech, Inc. Welfare Benefit Plan
54) Jagjit Singh, M.D., Inc. Welfare Benefit Plan
55) James M. LaRose, D 0 & Associates Welfare Benefit Plan
56) Jay Steer, CPA Welfare Benefit Plan
57) JMS Management, Inc. Welfare Benefit Plan-
58) John Roland Enterprises, Inc. Welfare Benefit Plan
59) John Sharratt Associates, Inc. Welfare Benefit Plan
60) Johnson*Graham*Malone Welfare Benefit Plan
61) Kerry Investments, Inc. Welfare -Benefit Plan
62) L.T. Management, Inc. Welfare Benefit Plan
63) L.T. Designs, Inc. Welfare Benefit Plan
64) Lafayette Compass, Inc. Welfare Benefit Plan
65) Law Offices of Michael W. Lucan-sky, P.A. Welfare Benefit Plan
66) M.J. Hoag Contracting, Inc. Welfare Benefit Plan-
67) MB Textile Consultants, Inc. Welfare Benefit Plan
68) MBT Management, Inc. Welfare Benefit Plan
69) McCarthy Management Services, Inc. Welfare Benefit Plan
*336 70) Michael P. Halpin, M.D. Welfare Benefit Plan
71) Midway Adjusting, Inc. Welfare Benefit Plan
72) Ming Court Management, Inc. Welfare Benefit Plan
73) Montwood Family Medical Center Welfare Benefit Plan
74) Nautical Marine Welfare Benefit Plan
75) Newell Brothers Construction Co., Inc. Welfare Benefit Plan
76) Och Consulting LLC Welfare Benefit Plan
77) PJ Reddy M.D., P.A. Welfare Benefit Plan
78) PPRVS, LLC Welfare Benefit Plan
79) Peveto Companies, LTD Welfare Benefit Plan
80) Progressive Door Corp. Welfare Benefit Plan
81) PTL Test Equipment, Inc. Welfare Benefit Plan
82) Rank Technology Corporation Welfare Benefit Plan
83) Robert G. Ostoyich, D.M.D., P.C. Welfare Benefit Plan
84) Rushing Management, Inc. Welfare Benefit Plan
85) S.H. Silver Company, Inc. Welfare Benefit Plan
86) Schauer and Associates, Inc. Welfare Benefit Plan
87) Sheffield Distributing Company, Inc. Welfare Benefit Plan
88) Sherasgold Corporation Welfare Benefit Plan
89) Sheree B. Lipkis, M.D., P.C. Welfare Benefit Plan
90) Smeester Bros., Inc. Welfare Benefit Plan
91) Swordfish, Inc. Welfare Benefit Plan
92) Taitronics, Inc. Welfare Benefit Plan
93) Techops Services, Inc. Welfare Benefit Plan
94) The Quantic Group, LTD. Welfare . Benefit Plan
95) Thomson Financial & Tax Services, Inc. Welfare Benefit Plan
96) Tobey Karg Sales Agency, Inc. Welfare Benefit Plan
97) Transehem, Inc. Welfare Benefit Plan
98) Victoria, Inc. Welfare Benefit Plan
99) Walter F. Zoller, D.M.D., P.A. Welfare Benefit Plan
100) Waterloo Contractors, Inc. Welfare Benefit Plan
101) Webb Core, Inc. Welfare Benefit Plan
102) Winchester Land and Development Corporation Welfare Benefit Plan
103) Winterton Company Welfare Benefit Plan
104) Wuest Estate Company Welfare Benefit Plan
52. In GX4, Mr. Townsend recorded under the column “Current Plan Status” those plans which were active. June 10, 2014, Tr. 151:16-152:20 (Townsend) (stating that “Active-Audit,” “Active-Issues,” and “Active” all signify an active Plan). In addition to the 104 Plans on GX1 with 2013 or 2014 census forms, another sixty-seven Plans listed in GX4 are identified as active as of 2014. See GX1, GX4. Those sixty-seven Plans, and their respective statuses, are as follows:
1) AAF Management Group, Inc. Welfare Benefit Plan (Active-Issues)
2) Anthem Medical Management Welfare Benefit Plan (Active)
*337 3) A-Tech Concrete Co. Welfare Benefit Plan (Active-Issues)
4) Baxter Management Co., Inc. Welfare Benefit Plan (Active-Issues)
5) BSP Solutions, Inc. Welfare Benefit Plan (Active-Issues)
6) C & J Wholesale Floral Services, Inc. Welfare Benefit Plan (Active)
7) C & LF Management Company, Inc. Welfare Benefit Plan (Active-Issues)
8) C. Andrew Childers, P.C. Welfare Benefit Plan (Active-Issues)
9) Carter Electric Management Company, Inc. Welfare Benefit Plan (Active-Issues)
10) Charles Parsons & Associates, CHTD. Welfare Benefit Plan (Active)
11) Coast to Coast Computer Products, Inc. Welfare Benefit Plan (Active)
12) Coolidge Management Corp. Welfare Benefit Plan (Active-Issues)
13) Daniel R. Fagan and Associates, P.C. Welfare Benefit Plan (Active-Issues)
14) David C. Spokane Orthodontic Assoc., P.C. Welfare Benefit Plan (Active-Issues)
15) Eisler Nurseries, Inc. Welfare Benefit Plan (Active-Issues)
16) Elam Enterprises, Inc. Welfare Benefit Plan (Active-Issues)
17) Engineered Systems & Products Welfare Benefit Plan (Active-Issues)
18) Flagship Development West, LLC Welfare Benefit Plan (Active)
19) Fleming Consulting, Inc. Welfare Benefit Plan (Active-Audit)
20) Harry H. Monokian, D.M.D., P.A. Welfare Benefit Plan (Active-Issues)
21) Harvey A. Kalan, M.D., Inc. Welfare Benefit Plan (Active-Issues) ■
22) James Barrie Publishing, Inc. Welfare Benefit Plan (Active-Issues)
23) JES Realty Associates, LLC Welfare Benefit Plan (Active-Audit)
24) John B. McKinnon, III, P.C. Welfare Benefit Plan (Active)
25) Johnson City Health & Fitness Center, Inc. Welfare Benefit Plan (Active-Issues)
26) Krengel Painting Co. Welfare Benefit Plan (Active)
27) Landair Wireless, LTD (A) Welfare Benefit Plan (Active-Audit)
28) Landair Wireless, LTD (B) Welfare Benefit Plan (Active-Audit)
29) Landair Wireless, LTD (-C) Welfare Benefit Plan (Active-Audit)
30) Law Offices of Duane Kumagai, P.C. Welfare Benefit Plan (Active-Issues)
31) Law Offices of Richard Rueda, P.C. Welfare Benefit Plan (Active-Issues)
32) Lyle J. Micheli, M.D., P.C. Welfare Benefit Plan (Active)
33) M & D Roebuck, Inc. Welfare Benefit Plan (Active-Issues)
34) M. & E. Zenhi, Inc. Welfare Benefit Plan (Active-Issues)
35) Makasu, Inc. Welfare Benefit Plan (Active-Issues)
36) Manellnic, Inc. Welfare Benefit Plan (Active-Audit)
37) Mario Magcalas, M.D., PA. Welfare Benefit Plan (Active)
38) Marketing Systems Group, Inc. Welfare Benefit Plan (Active-Issues) • •
*338 39) Mini Precision Devices, Co., Inc. Welfare Benefit Plan (Active-Issues)
40) MKBS Management Corporation Welfare Benefit Plan (Active-Issues)
41) Moran Industries, Inc. Welfare Benefit Plan (Active-Issues)
42) Morgen & Oswood Construction, Co., Inc. Welfare Benefit Plan (Active-Issues)
48)Ogre Holdings, Inc. Welfare Benefit Plan (Active-Issues)
44) Olouakan Conduct, Inc. Welfare Benefit Plan (Active-Issues)
45) Pamela K. Erdman, M.D., Inc. Welfare Benefit Plan (Active)
46) Paresh Shah, MD, PA Welfare Benefit Plan (Active-Issues)
47) Perfume Center of America Welfare Benefit Plan (Active-Issues)
48) Perry Reding, M.D., P.A, Welfare Benefit Plan (Active)
49) Peter W Moran PhD PC Welfare Benefit Plan (Active-Audit)
50) Phoenix Contractors Welfare Benefit Plan (Active-Issues)
51) Powercom Electrical Services, Inc. Wélfare Benefit Plan (Active-Issues) '
52) Radiology Consultants of El Paso, P.A. Welfare Benefit Plan (Active)
53) Rex Leasing of NC Welfare Benefit Plan (Active)
54) Roy R. Oates, Jr., P.C. Welfare Benefit Plan (Active-Issues)
55) S & S Salvage, Inc. Welfare Benefit Plan (Active)
56) Sarnia Behavioral Health Clinic, LLC Welfare Benefit Plan (Active)
57) Solloway Enterprises, Inc. Welfare Benefit Plan (Active-Issues)
58) Suketu Nanavati, M.D., P.C. Welfare Benefit Plan (Active-Issues)
59) SW OB-GYN Associates, P.A. Welfare Benefit Plan (Active-Issues)
60) Terry S. Wood, M.S., D.D.S., P.C. Welfare Benefit Plan (Active-Issues)
61) TMC Enterprises, Inc. Welfare Benefit Plan (Active)
62) U.E. Systems, Inc. Welfare Benefit Plan (Active-Issues)
63) W.S. Newell, Inc. Welfare Benefit Plan (Active-Issues)
64) WAJ Consulting Co., Inc. Welfare Benefit Plan (Active-Issues)
65) Whiteside Machine & Repair Co., Inc. Welfare Benefit Plan (Active-Issues)
66) Wilshire Palisades Law Group, P.C. Welfare Benefit Plan (Active-Issues)
67) Women’s Group for Obstetrics and Gynecology Welfare Benefit Plan (Active-Issues)
Therefore, a total of 171 Plans either have a 2013 or 2014 census form and are listed on GX1, or are listed as active on GX4, or both.
D. Transfers from the Trust a. Removal of Money from the Trusts
53. To transfer money out of the Trusts, PennMont would send emails to CTC or F & M Trust employees, directing CTC or F & M Trust as trustee to transfer funds from the Trusts to various other accounts. June 9, 2014, Tr. 62:18-63:4 (Sweeting); see, e.g., GX58, 60, 62, 63, 65, and GX2al to 2a2, 2a5, 2a7, 2a8, 2al3, 2al4, 2al5.
54. Jeanne Bonney typically sent these emails to CTC and F & M Trust on behalf of PennMont, using either a PennMont email account or some sort of Koresko law *339 firm email account. See, e.g., GX2al9; GX2a21. The two email accounts were “interchangeable.” GX176 at 55:3 (Bonney Dep., July 30, 2014).
55. Prior to the merger with F & M Trust, CTC did not require PennMont to submit any invoices, bills, or other documentation supporting its requests to transfer money from the Trusts. GX152 at 37:14-37:20 (Bonney Dep., Aug. 9, 2009). Upon becoming trustee, F & M Trust required PennMont to submit additional documentation along with its transfer requests. Id. at 37:14-38:7 (Bonney Dep., Aug. 9, 2009).
56. Previously, CTC’s oversight consisted of “random policy check[s]” and random invoice checks “every six months.” GX176 at 68:9-68:10 (Bonney Dep., July 30, 2014).
b. Trustee’s Withdrawal Documentation
57. CTC prepared monthly reports, documenting the cash flow of the REAL VEBA or SEWBP Trusts. See, e.g., GX2a3; GX2a5.
58. CTC forwarded three reports to PennMont each month, one for REAL VEBA and two for SEWBP, so that Jeanne Bonney and John Koresko could each have their own copy of the report. GX62. In turn, PennMont relied on the reports to administer the Plans, including reviewing all of the contribution checks and premium advisories. Sept. 9, 2009, P.I. Hr’g Tr. at 159:12-159:20 (Bonney).
59. F & M Trust also prepared reports that documented deposits into and withdrawals from the Trusts, similar to those prepared by CTC. See, e.g., GX2a23. Upon the merging of CTC and F & M Trust, CTC prepared a summary report showing all deposits into and withdrawals from the REAL VEBA Trust and the SEWBPT for the time period of January 1, 2002, to December 31, 2008. GX73.
60. The DOL summarized expenses from the VEBA Trust in GX2. June 9, 2014, Tr. 53:17-54:8 (Sweeting).
c. Transfer of $211,575.62 in Interest to PPT Before PPT Became Trustee
61. In an email dated May 16, 2002, Ms. Bonney, writing from her PennMont email account, directed CTC to “setup payment of interest earned monthly in- the Federated Account” and to wire such interest monthly to “Penn Public Trust Escrow.” GX60. At the time, PPT was not the Trustee of the Plans. June 9, 2014, Tr. 59:19-60:4 (Sweeting). Ms. Bonney emailed CTC in accordance to CTC’s custodial agreement with PennMont, which Mr. Koresko had drafted. GX176 at 74:24-75:8 (Bonney Dep., July 30, 2014).
62. At the direction of PennMont and Ms. Bonney, CTC transferred the interest earned each month on the Trusts’ funds to PPT.' CTC recorded the transfers in its monthly reports as “dividends earned.” See, e.g., GX2a8 at CTC10051; GX2a9 at CTC9793; GX2al0 at CTC9701. GX2 is a summary of these transfers of interest to PPT during .the time period of June 2, 2002, to January 4, 2005. GX2 (listing transactions 3, 4, 6, 10, 14, 17, 20, 24, 28, 32, 34, 38, 40, 43, 46, 49, 52, 56, 58, 61, 62, 64, 67, 71, 73, 75, 80, 84, 90, 94, 96, 99, and 103). For this period, CTC transferred a total of $626,093.50 in interest earned on Trust accounts to PPT. GX2; GX171.
63. Section 4:02 of the Master Plan document provides that “[a]ny and all other contributions to this Plan by the Employer shall be irrevocable and neither such contribution nor any income therefrom, nor any increments thereon shall be used for or diverted to purposes other than for the exclusive Benefit of participating Beneficiaries of the adopting Employer.” GX47 at JJKDOL025251. The Master Plan further states at Section 2:03 that *340 there shall be no diversion of plan assets. Id. at JJKDOL025248 (“It shall be impossible at any time prior to the satisfaction of all liabilities under the Trust, with respect to the Employees of the Employer and their Beneficiaries, for any part of the corpus, or income of the Trust to be used for, or diverted to purposes other than for the exclusive Benefit of such Employees or their Beneficiaries.”)
64. The REAL VEBA and SEWBP Master Trust documents similarly state at Section 2.1 that “all assets and earnings of the Trust are solely the net earnings of the Trust and shall not in any manner whatsoever inure to the benefit of any other person other than a Person designated as an employee or beneficiary of an Adopting Employer under the terms of the Plan.” GX49 at § 2.1; GX48 at § 2.1.
d. Transfer of $JpH, 517.88 to PPT from CTC for “Expenses” in April 2002
64. In an email dated April 11, 2002, Ms. Bonney, writing from her PennMont email account, directed CTC that, “upon receipt of REAL VEBA Trust assets from FUNB,” CTC should wire “an amount to be determined by PennMont Benefit Services” to Penn Public Trust Escrow, account XXX-828-1, “for the purposes of payment of Trust expenses.” GX58 at CTC2675. Four days later, Ms. Bonney sent a follow-up email to CTC, directing it to “wire transfer to PPT $414,517.88.” GX2al at CTC2371.
66.The CTC “Report of Principal Cash” for April 2002 documents that $414,517.88 was wired on April 16, 2002, to “Penn Mont Benefit Services Plan Administrator for the purposes of payment of trust expenses per email dated 4/12/02 from Jeanne Bonney.” GX2al at CTC10188. Commerce Bank records confirm that CTC wired $414,517.88 to account XXX-8281, “Penn Public Trust Escrow-Koresko & Assoc. PC Agents,” on April 16, 2002. Id. at Commerce 242.
67. John Koresko directed the transfer of this amount based on his categorizing it as “surplus.” GX176 at 75:9-76:2 (Bonney Dep., July 30, 2014).
e. Transfer of $2,916,8S2.71 to PennMont from July 2002 to May 2008
68. During the time period of July 22, 2002, to May 27, 2008, CTC transferred a total of $2,916,832.71 to PennMont. GX2; GX171. GX2 is a summary of the emails that Ms. Bonney, writing on behalf of PennMont, sent to CTC requesting the funds, the CTC monthly reports showing that the funds were transferred to Penn-Mont, and, where available, checks written on the Trust account to PennMont. GX2 (listing transactions 8, 12,15, 18,19, 21, 27, 31, 36, 37, 41, 44, 48, 54, 59, 65, 70, 77, 82, 85, 87, 89, 92, 97, 101, 102, 104, 106, 108, 109, 111, 113, 124, 128, 129, 141, 153, 154, 155, 157, 159, 163, 164, 165, 166, 167, 175, 176, 194, and 199). In internal CTC records, these fees were intermittently described as “Setup Fees” and “Administrative fees.” Id.
69. PennMont did not submit separate invoices to CTC with these payment requests'. GX176 at 130:24-131:6 (Bonney Dep., July 30, 2014).
70. PennMont billed and was paid fees directly from employers for its plan’s administrative services. June 9, 2014, Tr. 50:11-21 (Sweeting). Mr. Townsend was responsible for sending invoices for fees to plans on behalf of PennMont. June 10, 2014, Tr. 176:9-176:19 (Townsend).
71. Those fees were the only fees charged to employers. June 10, 2014, Tr. at 177:2-177:14 (Townsend); see also June 11, 2014, Tr. 17:24-18:5 (L. Koresko). No other trustee or administrator fees were disclosed to employers in the start-up *341 packet they received before establishing a plan under the REAL VEBA. June 11, 2014, Tr. 37:24-40:21 (L. Koresko) (discussing fees disclosed to employers in REAL VEBA “proposal package”); see also GX176 at 32:1-32:4) (Bonney Dep., July 30, 2014) (“The cover sheet [of the proposal package] would list the fees, and basically, they [the employers] just signed off on that, that they understood there were fees, and that they were in a particular league at that time.”)
f. Transfer of $389,780.62 out of the Trusts to KAPC and $988,14,0.89 out of the Trusts to KLF
72. At the direction of PennMont and Ms. Bonney, CTC transferred a total of $1,377,921.01 to KAPC and KLF during the time period of July 22, 2002, to August 25, 2008. GX2 is a summary of the emails that Ms. Bonney, writing on behalf of PennMont, sent to CTC directing the transfer of these amounts, and the corresponding CTC monthly reports showing the amounts transferred to PennMont. GX2 (listing transactions 9, 29, 60, 74, 76, 81, 100, 112, 151, 152, 156, 161, 168, 169, 170, 171, 172, 177, 178, 179, 195, 200, 201, and 205).
73. No documents were provided to CTC to support the transfers of Trusts’ assets to KAPC or KLF.
74. In May 2009, F & M Trust requested “detailed information” from Ms. Bonney to support her request to pay KLF for legal fees incurred. GX63. In response, Ms. Bonney forwarded a spreadsheet to F & M Trust, consisting of all of the “documents, emails and other correspondence” for the fees, and stated that the fees were to be paid because KLF “represents six employers in U.S. Tax Court where the [Internal Revenue Service] has adjusted their personal and corporate income tax because they participate in the 419 plan.” Id. Ms. Bonney sought reimbursement from the Trust for her work on these “test cases” because she considered it would impact more than a hundred of KLF’s clients that were then being examined and adjusted by the Internal Revenue Service (the “IRS”). Id.
75. GX63 provides the spreadsheet that Ms. Bonney attached to the email to F & M Trust, listing for each employer the work performed by KLF employees on the employer’s tax court case and the hourly rate per employee. See, e.g., GX63 (listing eighteen entries under “Advanced Dental/Tax”); id. (listing forty entries under “Solloway/Tax Court”); see also GX176 72:21-72:25 (Bonney Dep., July 30, 2014).
g. Transfer of $276,147.93 out of the Trusts to a Lobbying Firm
76. Jefferson Government Relations (“JGR”) was a lobbying firm in Washington, D.C. See generally GX72 (representation agreement). In June 2001, JGR entered into a contract with REAL VEBA Trust, which was signed by Mr. Koresko in his capacity as “Chairman” of PennMont, Plan Administrator. Id. at JGR00001632. Among other things, the contract called for a monthly retainer of $15,000 to be paid to JGR. Id. at JGR00001631.
77. In an email dated May 16, 2002, Ms. Bonney, writing from her PennMont email account to CTC, characterized the “monthly fee due to our lobbyist firm in D.C.” as a “trust expense.” GX60 at CTC00002654. She followed-up on May 21, 2002, requesting that CTC “set up a payment system for a monthly expense of approximately $10,000 for our DC lobbyist.” GX61 at CTC00002652.
78. During the time period of May 21, 2002, to June 27, 2005, the Trust sent thirty-four monthly payments, totaling $276,147.93, to JGR. GX2; GX171. The monthly payments corresponded to the amount requested by JGR in its invoices to *342 PennMont. See, e.g., GX2a2 at JGR00001681, CTC00010172; GX2a8 at JGR00001699, JJKDOL165810; GX2all at JGR00001749, JJKDOL258039. GX2 is a summary of the emails that Ms. Bonney, writing on behalf of PennMont, sent to CTC directing payment to JGR, the invoices JGR sent to PennMont and Mr. Koresko requesting payment, and the corresponding checks issued to JGR. GX2 (listing transactions 2, 5, 7, 11, 13, 16, 22, 25, 26, 30, 33, 35, 39, 42, 45, 50, 51, 55, 57, 63, 68, 69, 72, 78, 79, 83, 88, 93, 95, 98, 105, 107,110, and 142).
78. JGR was paid from the Trusts for lobbying members of Congress and their staff regarding the tax treatment of the employers who sponsored- the Plans. The letters, addressed to “Mr. John Koresko, Pennmont Benefit Services, Inc.” during the time frame that JGR was paid from the Trust, detail the work performed for each corresponding invoice. GX72 at JGR00001682-1779. These invoices contain numerous entries on political activities concerning tax litigation, IRS regulations and activities, and the deductions available to individual employers for participating in the Trust. Id.
80. For example, the April 10, 2002, JGR letter enclosing the March 2012 invoice includes activities such as discussions with congressional and agency staff on “proposed Treasury regulations” and “IRS actions and how best to counter them.” GX72 at JGR00001682.' Similarly, the May 13, 2002, JGR letter enclosing the April invoice includes activities such as discussions regarding the “merits of the Section 419(a)(f)(6) deduction and the importance of careful regulation thereof.” Id. at JGR00001685.
81. The June 12, 2002, letter to Mr. Koresko enclosing the May invoice charged for ongoing discussions with “you” and “Larry Koresko” regarding fundraising events for a congressional candidate; for speaking with “you and Larry Koresko” regarding “targeted campaign contributions”; and for speaking with Larry Koresko regarding how best to involve insurance carriers and their lobbyists in the “legislative effort.” GX72 at JGR00001688-89. Similarly, the August 11, 2003, letter listed JGR’s activities on behalf of Mr. Koresko and PennMont, as, among other things, attending the “NRCC summer retreat” with several congressional representatives, holding discussions with “you” regarding “Treasury regulations, potential litigation approaches, and next steps on legislative strategy,” and conversations regarding. “possible events” for several congressional representatives. GX72 at JGR00001730-31. The July 8, 2004, letter included a breakfast with a congressional Representative, “outlining the agenda for the remainder of the 108th Congress” and discussions of “possible approaches to tax shelter issues,” while the June 11, 2005, letter listed work performed as discussions with “you and the National Republican Congressional Committee about a possible conversation between you and Chairman Boehner” and “arranged and attended an event with Senate Republican Policy Committee Chairman Jon Kyi (R-AZ).” GX72 at JGR00001754, JGR00001780.
h. Transfer of $276,970.75 to Outside Attorneys Before July 2009
Before 2009, every contract entered into by PennMont or Ms. Bonney was first vetted by Mr. Koresko, including the hiring of various outside attorneys. GX176 at 137:11-137:21 (Bonney Dep., July 30, 2014).
i. $107,651.90 to Caplin & Drysdale and its Affiliated Local Counsel in 2008 and 2009
82.During the time period of March 14, 2008, to April 3, 2009, the Trust paid a *343 total of $107,651.90 to Caplin & Drysdale, Chartered (“C & D”), and $1,485.00 to C & D’s local counsel, Gilbert, Harrell, Sumer-ford & Martin, P.C., for a total payment of $109,136.90. GX2. C & D is a Washington, D.C.,-based law firm, which was engaged to represent Wayne and Sara Sheffield, Gary and Peggy Sheffield, and Sheffield Distributing Co. in a “tax refund” case

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Source: Frix Law Library, https://www.frixlaw.com/law-library/cases/7229863. Public record. Not legal advice.