Benefits Contractor Settles DOL Lawsuit Claiming Misuse of Funds

A government contracting benefits administrator and its executives have agreed to a $4.4 million settlement with the US Labor Department over claims the company misused millions of dollars meant for health and welfare plans it oversees.

Axim Fringe Solutions Group LLC, its owner, and its director of compliance accounting signed onto a proposed consent judgment that would put an end to a lawsuit federal benefits regulators filed in the US District Court for the District of Maryland in February alleging fiduciary breaches.

DOL’s Employee Benefits Security Administration claims the company marketed itself as a net-zero plan provider by deducting its ...