Department of Labor files suit after investigation finds fringe benefit plan fiduciaries misused millions of dollars to pay employer expenses

Summary:

The U.S. Department of Labor has filed a lawsuit against Axim Fringe Solutions Group, LLC, and its executives, alleging that they mismanaged fringe benefits owed to employees working for government service contractors across the United States. The company allegedly misused over $5 million in funds from employee trust accounts to pay administrative costs and expenses of their clients, rather than the employers who are required by law to pay these costs. The Department of Labor is seeking the appointment of an independent fiduciary to administer the benefit plans and for the defendants to restore all losses, including interest, resulting from their breaches. The department also seeks to permanently bar Axim, Campbell, and McManes from acting as fiduciaries or service providers to any benefit plan covered by Title I of ERISA.