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419 and 412i plans, captive insurance, abusive insurance plans, listed transactions, reportable transactions, section 79 plans, IRC 6707A, 8886 form filing, abusive tax shelters, and more.


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If HAVE YOU INVESTED IN A 412i,419,CAPTIVE INSURANCE, SECTION 79 PENSION PLAN?




If so, get to know the real truth behind your investment and what you can do to defend yourself. Since 2004, the IRS has amended the tax laws regarding these plans and thus has placed aggressive penalties and fines and aggressively auditing people who don’t know the truth. Consult with us today and let us help guide you through this serious situation and lower your financial risk.

information

CAUTION:



The IRS is attacking 412(e)(3), Section 79, Captive Insurance and many other benefit plans having life insurance

UNITED STATES DISTRICT COURT
DISTRICT OF CONNECTICUT
U.S. TELEMANAGEMENT, INC.,
:

DOCKET NO.
RONALD SCHEIBEL, individually
and on behalf of the U.S.
:
Telemanagement Inc. Defined
Benefit Plan and the U.S.
:
Telemanagement Inc. Welfare Benefit
Trust, S. KENESTON AND
:
ASSOCIATES, INC., and SCOTT
KENESTON, individually and
:
on behalf of the S. Keneston Defined
Benefit Plan,
:
Plaintiffs,
:
v.
:
FIDELITY SECURITY LIFE
:
JULY 31, 2012
INSURANCE CO., CJA ASSOCIATES,
INC., FIRST ACTUARIAL
:
CORPORATION and THOMAS
THORNDIKE,
:
Defendants. :
Class Action Complaint
I.
Summary.
1.

This is a class action brought by two small businesses that established
employee benefit plans and two plan participants in those plans. They sue under §§ 502
(a)(2) and (a)(3) of the Employee Retirement Income Security Act ("ERISA"), 29 U.S.C.
§§ 1132 (a)(2) and (a)(3), against the fiduciaries who gave them investment advice and
administered these plans.
Case 3:12-cv-01110 Document 1 Filed 08/01/12 Page 1 of 36
2.
Defendant Fidelity Security Life Insurance Company (FSL) through its
agents defendants CJA Associates, Inc. (CJA) and Thomas Thorndike
(Thorndike)(collectively Defendants) used a pre-packaged program designed and
administered by CJA and defendant First Actuarial Corporation (FAC) to induce the
Plaintiffs and other similarly situated businesses to establish employee benefit programs
and invest plan trust assets in FSL annuities. Pre-packaged recommendations prepared
by CJA and delivered by Thorndike promised the Plaintiffs and others that investing
plan trust assets in these annuities would yield large tax breaks for the businesses and
secure large retirement benefits for plan participants.


Strategy &

SUCCESS

CELL: 516-236-8440

"Mr. Wallach, thanks so much for taking the time to talk to me today
about VEBAs. Any information you can
send me would be helpful.  Hopefully, we can work together in the future as interest in VEBAs increase."

Corman G. Franklin Office of the Assistant Secretary for Policy U.S. Department of Labor

Lance Wallach EXpert Witness

.OFFICES OF LANCE WALLACH


(516) 935-7346 
(516) 938-5007 


Lance@expertcpa.org 

Office: 516-938-5007

412i, 419, Captive Insurance and Section 79 Plans


The IRS has been attacking all 419 welfare benefit plans, many 412i retirement plans, captive insurance plans with life insurance in them, and Section 79 Plans. IRS in aggressively auditing various plans and calling them “listed transactions, abusive tax shelters, or reportable transactions.” Participation in any of which must be disclosed to the service. The result has been IRS audits, dis-allowance, and huge fines for not properly reporting under IRC 6707A.