Nationwide Defeats Lawsuit Over Life Insurance Fraud Scheme

Nationwide Life Insurance Co. defeated a lawsuit challenging its involvement with a Pennsylvania imprisoned attorney who mishandled millions of dollars of employer-sponsored cash value life insurance policies.

The claims seeking to hold Nationwide liable under the Employee Retirement Income Security Act were filed too late, Judge Wendy Beetlestone of the U.S. District Court for the Eastern District of Pennsylvania held Sept. 28.

The dispute stems from the multiple-employer welfare arrangement designed and created by disbarred attorney John Koresko and his entities—commercially known as REAL VEBA. The arrangement drew multiple lawsuits by the Labor Department and participants who suffered millions of ...