Indiana Judge Awards $20 Million To Victims of ERISA Scam

INDIANAPOLIS - An Indiana federal judge awarded more than $20 million to a class of small business owners who paid for phony employee benefit plans that were backed by an undercapitalized Belgian reinsurer. Connelly Management Employee Welfare Benefit Plan v. North American Indemnity N.V., No. 1336085 (S.D. Ind.).

In an April 8 order, Judge Larry J. McKinney of the Southern District of Indianapolis ruled that the companies fell victim to a health insurance fraud scam perpetrated by the owners of North American Indemnity Co. (NAI), leaving them with $10 million in unpaid claims filed by 12,000 employees. The judge issued …