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Benistar,Niche,Sea Nine,Veba,Grist Mill
Trust,Millenium Plan,419e,412i,abusive
transactions,Benistar plan, Benistar Trust
Trust,Millenium Plan,419e,412i,abusive
transactions,Benistar plan, Benistar Trust
| Lawsuits Against Benistar |
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Lawsuits against Benistar as of December 15, 2010 Stephen Ouwinga, et al v. Benistar 419 Plan Services, In, et al Filed: November 29, 2010 as 10-2531 Updated: November 29, 2010 22:23:57 Defendants: BENISTAR 419 PLAN SERVICES, INC. and BENISTAR LTD. Defendant - Appellees: EDWARDS ANGELL PALMER & DODGE, LLP, JOHN H. REID, III, JOHN HANCOCK LIFE INSURANCE COMPANY, JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY, KRIS LESLEY and others Plaintiff - Appellants: CHRISTINE OUWINGA, DAVID OUWINGA, LEANN OUWINGA, STEPHEN OUWINGA and STONEY CREEK FISHERIES AND EQUIPMENT INC., on behalf of themselves and all others similarly situated Court: Sixth Circuit > Circuit Court Type: Other Statutes > Racketeer Influenced --------------------------------------- The Midwest Media Group Inc et al v. Benistar Employer Services Trust Corporation Inc et al Filed: October 14, 2010 as 2:2010cv00914 Updated: October 15, 2010 03:16:10 Plaintiffs: Digital Attic Inc , John Connolly , Michael McDonald and The Midwest Media Group Inc Defendants: Benistar Employer Services Trust Corporation Inc and The Crump Group Presiding Judge: Patricia J Gorence Cause Of Action: Diversity-Other Contract Court: Seventh Circuit > Wisconsin > Eastern District Court Type: Contract > Other Contract ---------------------------------------- Freyr Holdings, LLC v. Benistar Administrative Services, Inc. et al Filed: October 5, 2010 as 2:2010cv07447 Updated: November 30, 2010 23:30:59 Last Document Filed: November 30, 2010 Plaintiff: Freyr Holdings, LLC Defendants: Avon Capital LLC, Benistar Administrative Services, Inc., DOES and Donald J. Trudeau Presiding Judge: Philip S. Gutierrez Referring Judge: Jacqueline Chooljian Court: Ninth Circuit > California > Central District Court Type: Other Statutes > ---------------------------------------- The Midwest Media Group Inc et al v. Benistar Employer Svc Trust Co Inc et al Filed: June 1, 2010 as 3:2010cv00843 Updated: June 3, 2010 02:29:28 Plaintiffs: Digital Attic Inc and The Midwest Media Group Inc Defendants: Benistar Employer Svc Trust Co Inc and The Crump Group Judge: Janet C. Hall Cause Of Action: Diversity-Breach of Contract Court: Second Circuit > Connecticut > District Court Type: Contract > Other Contract --------------------------------------- Freyr Holdings LLC v. Benistar Admin Services Inc et al Filed: May 14, 2010 as 2:2010cv03674 Updated: August 7, 2010 02:07:13 Last Document Filed: August 2, 2010 Plaintiff: Freyr Holdings LLC Defendants: Avon Capital LLC, Benistar Admin Services Inc, Does and Donald J Trudeau Presiding Judge: Philip S. Gutierrez Referring Judge: Jacqueline Chooljian Court: Ninth Circuit > California > Central District Court Type: Other Statutes > -------------------------------------- Iantosca, et al v. Step Plan Services, Inc., et al Filed: September 16, 2009 as 09-2184 Updated: March 29, 2010 13:20:00 Defendants: BENISTAR ADMINISTRATIVE SERVICES, INC., BENISTAR EMPLOYER SERVICES TRUST CORPORATION, BENISTAR INSURANCE GROUP, INC., BENISTAR LTD., BENISTAR PROPERTY EXCHANGE TRUST COMPANY, INC. and others Defendant - Appellant: BENISTAR 419 PLAN SERVICES, INC. Plaintiff - Appellees: BELLEMORE ASSOCIATES, LLC, BELRIDGE CORPORATION, GAIL A. CAHALY, JEFFREY M. JOHNSTON and JOSEPH IANTOSCA, Individually and as Trustee of the Faxon Heights Apartments Realty Trust and Fern Realty Trust Court: First Circuit > Circuit Court Type: Torts - Injury > Other Personal Injury -------------------------------------- Dorah v. Benistar Filed: August 7, 2009 as 1:2009cv04860 Updated: August 7, 2009 19:38:10 Plaintiff: Duane Dorah Defendant: Benistar Presiding Judge: Honorable Samuel Der-Yeghiayan Cause Of Action: Civil Miscellaneous Case Court: Seventh Circuit > Illinois > Northern District Court Type: Other Statutes > None -------------------------------------- Midland National Life Insurance Company v. McPherron et al Filed: August 3, 2009 as 1:2009cv04714 Updated: August 4, 2009 06:32:31 Plaintiff: Midland National Life Insurance Company Defendants: Anthony McPherron, Benistar 419 Plan & Trust, Benistar Admin Services, Inc. and Wayne Bursey Presiding Judge: Honorable William J. Hibbler Cause Of Action: Interpleader Action Court: Seventh Circuit > Illinois > Northern District Court Type: Contract > None -------------------------------------- Iantosca, et al v. Step Plan Services, Inc., et al Filed: July 16, 2009 as 09-1953 Updated: September 1, 2010 01:24:58 Defendants: BENISTAR ADMINISTRATIVE SERVICES, INC., BENISTAR EMPLOYER SERVICES TRUST CORPORATION, BENISTAR INSURANCE GROUP, INC., BENISTAR LTD., BENISTAR PROPERTY EXCHANGE TRUST COMPANY, INC. and others Defendant - Appellant: BENISTAR 419 PLAN SERVICES, INC. Plaintiff - Appellees: BELLEMORE ASSOCIATES, LLC, BELRIDGE CORPORATION, GAIL A. CAHALY, JEFFREY M. JOHNSTON and JOSEPH IANTOSCA, Individually and as Trustee of the Faxon Heights Apartments Realty Trust and Fern Realty Trust Court: First Circuit > Circuit Court Type: Torts - Injury > Other Personal Injury --------------------------------------- Ouwinga et al v. Benistar 419 Plan Services, Inc. et al Filed: January 22, 2009 as 1:2009cv00060 Updated: October 30, 2010 02:17:37 Plaintiffs: Christine Ouwinga, David Ouwinga, Leann Ouwinga, Stephen Ouwinga and Stoney Creek Fisheries and Equipment Inc. Defendants: Benistar 419 Plan Services, Inc., Benistar Ltd., Edwards Angell Palmer & Dodge LLP, John H. Reid, III, John Hancock Life Insurance Company and others Presiding Judge: Judge Janet T. Neff Cause Of Action: Diversity Court: Sixth Circuit > Michigan > Western District Court Type: Other Statutes > Plaintiff ---------------------------------------- Iantosca et al v. Benistar Administrative Services, Inc et al Filed: October 23, 2008 as 1:2008cv11785 Updated: August 14, 2010 02:11:47 Plaintiffs: Bellemore Associates, LLC, Belridge Corporation and Gail A. Cahaly Defendants: Benistar 419 Plan Services, Inc., Benistar Administrative Services, Inc, Benistar Employer Services Trust Corporation, Benistar Insurance Group, Inc., Benistar Ltd. and others Presiding Judges: Judge Nathaniel M. Gorton and Judge Cause Of Action: Diversity Court: First Circuit > Massachusetts > District Court Type: Torts - Injury > Defendant ----------------------------------------- Bellin Memorial Hospital Inc v. Bay Lakes Cooperative Health Plan et al Filed: July 26, 2007 as 1:2007cv00685 Updated: August 1, 2007 08:35:37 Plaintiff: Bellin Memorial Hospital Inc Defendants: Bay Lakes Cooperative Health Plan, Benistar Administrative Services Inc, Gerber Life Insurance Company and National Benefit Administrators Inc Presiding Judge: Judge William C Griesbach Cause Of Action: Petition for Removal Court: Seventh Circuit > Wisconsin > Eastern District Court Type: Labor > Labor: E.R.I.S.A. ------------------------------------------ UBS PaineWebber Inc. v. Benistar Property Exchange Trust Company, Inc. Filed: January 25, 2006 as 1:2006cv00611 Updated: January 25, 2006 00:00:00 Presiding Judge: Judge Richard C. Casey Cause Of Action: Notice of Removal Court: Second Circuit > New York > Southern District Court Type: Torts - Property > Fraud or Truth-In-Lending ------------------------------------------ Labor v. Benistar 419 Plan Svc Inc Filed: December 7, 2005 as 3:2005mc00366 Updated: August 13, 2007 16:56:13 Presiding Judge: Judge Christopher F. Droney Cause Of Action: Administrative Subpoena Court: Second Circuit > Connecticut > District Court Type: Other Statutes > Other ------------------------------------------ Source: http://dockets.justia.com See also: IRS Raids Benistar Offices |
Posted: Dec. 9, 2010
By Lance Wallach
Recently IRS raided Benistar, which is also known as the Grist Mill Trust, the
promoter and operator of one of the better known and more heavily scrutinized of
the Section 419 life insurance plans. IRS attacked the Benistar 419 plan, and
one of its tactics was to demand the names of all the clients Benistar worked with
— so they could be audited by the IRS, Benistar refused to give the names and
actually appealed the decision to turn over the names.
The appeal was unsuccessful, but Benistar officials still refused to give up the
names. Recently, the IRS raided the Benistar office and took hundreds of boxes
of information, which included information on clients who were in their 419 plan.
In documents filed by Benistar itself, they stated that 35 to 50 armed IRS agents
descended upon their office to seize documents..........more
By Lance Wallach
Recently IRS raided Benistar, which is also known as the Grist Mill Trust, the
promoter and operator of one of the better known and more heavily scrutinized of
the Section 419 life insurance plans. IRS attacked the Benistar 419 plan, and
one of its tactics was to demand the names of all the clients Benistar worked with
— so they could be audited by the IRS, Benistar refused to give the names and
actually appealed the decision to turn over the names.
The appeal was unsuccessful, but Benistar officials still refused to give up the
names. Recently, the IRS raided the Benistar office and took hundreds of boxes
of information, which included information on clients who were in their 419 plan.
In documents filed by Benistar itself, they stated that 35 to 50 armed IRS agents
descended upon their office to seize documents..........more
By: Jessica Toonkel Marquez
October 14, 2009
plans to small businesses might soon be facing a wave of lawsuits — unless
Congress decides to take action soon.
For years, advisers and insurance brokers have sold the 412(i) plan, a type of
defined- benefit pension plan, and the 419 plan, a health and welfare plan, to
small businesses as a way of providing such benefits to their employees, while
also receiving a tax break.......more
October 14, 2009
plans to small businesses might soon be facing a wave of lawsuits — unless
Congress decides to take action soon.
For years, advisers and insurance brokers have sold the 412(i) plan, a type of
defined- benefit pension plan, and the 419 plan, a health and welfare plan, to
small businesses as a way of providing such benefits to their employees, while
also receiving a tax break.......more
accountingTODAY
The dangers of being "listed"
A warning for 419, 412i, Sec.79 and captive insurance
Taxpayers who previously adopted 419, 412i, captive insurance or Section 79 plans
are in big trouble.
In recent years, the IRS has identified many of these arrangements as abusive
devices to funnel tax deductible dollars to shareholders and classified these
arrangements as "listed transactions".......more
The dangers of being "listed"
A warning for 419, 412i, Sec.79 and captive insurance
Taxpayers who previously adopted 419, 412i, captive insurance or Section 79 plans
are in big trouble.
In recent years, the IRS has identified many of these arrangements as abusive
devices to funnel tax deductible dollars to shareholders and classified these
arrangements as "listed transactions".......more
Recent court cases have highlighted serious problems in plans welfare benefit
plans issued by Nova Benefit Plans of Simsbury, Connecticut. Recently unsealed
IRS criminal case information now raises concerns with other plans as well. If you
have any type plan issued by NOVA Benefit Plans, U.S. Benefits Group, Benefit Plan
Advisors, Grist Mill trusts, Rex Insurance Service or Benistar, contact a competent
419 expert immediately. You may be subject to an audit or in some cases, criminal
prosecution.
On November 17th, 59 pages of search warrant materials were unsealed in the
Nova Benefit Plans litigation currently pending in the U.S. District Court for the District
of Connecticut. According to these documents, the IRS believes that Nova is involved
in a significant criminal conspiracy involving the crimes of Conspiracy to Impede the
IRS and Assisting in the Preparation of False Income Tax Returns.
Earlier this year, 70 armed IRS Criminal Division special agents raided the offices of
Nova Benefit Plans in Connecticut. The IRS has taken other recent criminal
enforcement actions in other states including Nebraska and Milwaukee, Wisconsin.
The IRS has told the court that it believes Nova is promoting abusive "section 419"
welfare benefit plans.
The IRS claims that a cooperating witness and several undercover agents
"penetrated" Nova to ascertain its internal operations. They say Nova helped their
clients violate tax laws by claiming the most minor injuries as permanent disabilities
to qualify for special tax treatment. In other words, they would assist clients claim a
minor scrape was a disabling and disfiguring permanent injury.
The IRS also claims that Nova assisted clients in backdating documents filed with
the IRS.
How does the phony welfare benefit plan scam work? A taxpayer can contribute
money tax free to the plan on behalf of the beneficiary. At a later date and with the
assistance of Nova, the beneficiary can claim the money (again tax free) because of
a disability. According to the IRS, Nova's plan was a scam because Nova helped
taxpayers claim false disabilities. The Internal Revenue Code says disability
payments are tax free if there is a permanent loss of a bodily part or function. A small
scrape is a far cry from the loss of an eye.
In one recorded conversation a representative of Nova said, "We've never denied a
claim... I recently, I don't want to say the client's name, but he went through a minor
surgery, had a little--had a mole removed off his elbow I think and left a little scar the
size of a pencil eraser, and, you know, that--that qualified."
When discussing the "independent plan trustee" that must approve the claims, the
Nova representative said, "I, I'm gonna put this very simply for you, we control the
trustee, okay, and I, I don't mean that in a bad way. He's independent but he's part of
the family and we control the stuff that happens, we have ways to make stuff
happen...It's best for us to pay out as much claims so when it times for us to fight
this in tax court, we can play and sing the welfare benefit song."
Nova is not alone in the scam. According to the IRS affidavit, Nova and its principals
have also done business as U.S. Benefits Group, Benefit Plan Advisors, Grist Mill
trusts, Rex Insurance Service and Benistar.
Anyone who has purchased a plan from Nova or the related entities should
immediately seek competent counsel. If the IRS is correct and these plans are not
legitimate, the tax consequences to participants could be very high. In some cases, if
clients entered these plans with knowledge of Nova's history or promises to evade
taxes, the consequences could involve prison.
As a result of the raid and a cooperating witness (we call these people informants),
the IRS is believed to have the client lists of Nova, Grist Mill and the others. Generally
as a matter of policy, the IRS will not criminally prosecute a taxpayer who comes
forward voluntarily and agrees to come into compliance. If the IRS knocks on your
door first, however, all bets are off and the IRS can prosecute criminally.
Author Resource:- A full service law firm concentrating in tax matters, asset recovery and
white-collar criminal defense. Tax representation includes audit defense, clean up of bad 419
plans, tax collections and criminal investigations.
| IRS Cracks Down on Welfare Benefit Plans - Benistar, Nova, Grist Mill |
by Lance Wallach
Taxpayers who previously adopted 419, 412i, captive insurance or Section 79
plans are in big trouble. In recent years, the IRS has identified many of these
arrangements as abusive devices to funnel tax deductible dollars to shareholders
and classified these arrangements as “listed transactions.” These plans were
sold by insurance agents, financial planners, accountants and attorneys seeking
large life insurance commissions. In general, taxpayers who engage in a “listed
transaction” must report such transaction to the IRS on Form 8886 every year that
they “participate” in the transaction, and the taxpayer does not necessarily have to
make a contribution or claim a tax deduction to be deemed to participate. Section
6707A of the Code imposes severe penalties ($200,000 for a business and
$100,000 for an individual) for failure to file Form 8886 with respect to a listed
transaction. But a taxpayer can also be in trouble if they file incorrectly......more
Taxpayers who previously adopted 419, 412i, captive insurance or Section 79
plans are in big trouble. In recent years, the IRS has identified many of these
arrangements as abusive devices to funnel tax deductible dollars to shareholders
and classified these arrangements as “listed transactions.” These plans were
sold by insurance agents, financial planners, accountants and attorneys seeking
large life insurance commissions. In general, taxpayers who engage in a “listed
transaction” must report such transaction to the IRS on Form 8886 every year that
they “participate” in the transaction, and the taxpayer does not necessarily have to
make a contribution or claim a tax deduction to be deemed to participate. Section
6707A of the Code imposes severe penalties ($200,000 for a business and
$100,000 for an individual) for failure to file Form 8886 with respect to a listed
transaction. But a taxpayer can also be in trouble if they file incorrectly......more
Business Owners in 419, 412i, Section 79
and Captive Insurance Plans Will
Probably Be Fined by the IRS Under
Section 6707A
and Captive Insurance Plans Will
Probably Be Fined by the IRS Under
Section 6707A
