DOL Sues Federal Contractor Benefits Firm for Mishandling Funds

The US Labor Department is suing a government contracting benefits administrator for allegedly misusing millions of dollars taken from health and welfare plans it oversees.

Regulators claim Maryland-based Axim Fringe Solutions Group LLC charged federal contractor employees for administrative costs their client employers were legally required to pay. An investigation by DOL’s Employee Benefits Security Administration uncovered more than $5 million in worker contributions inappropriately transferred from employee trust accounts to the Axim operating account, the lawsuit alleges.

EBSA sued the company, its owner, and a director of compliance accounting Tuesday in the US District Court for the District of ...