A Philadelphia based law firm, Montgomery McCracken Walker & Rhodes, LLP (MMWR), had a class action lawsuit slapped against it on December 9th for representing alleged trust fund embezzlers and tax attorneys. The lawsuit was filed in the US District Court for the Eastern District of Pennsylvania by the plaintiffs against the law firm.
Tax Attorney Converted Assets
The law suit has revealed several instances that pertain to a tax attorney John Koresko, represented by the law firm Montgomery McCracken Walker & Rhodes. According to the claim, Koresko hired the law firm to represent him in several lawsuits related to his operation of an employer welfare arrangement, REAL VEBA.
The assets that were held by the REAL VEBA Trust as well as the Single Employer Welfare Benefit Plan Trust (SEWBPT), were begin converted by Koresko and his associates, according to the suit. These trusts were initially intended to hold assets for participants and their beneficiaries.
MMWR did not Withdraw Appearance Despite Ruling
The US District Court for the Eastern District of Pennsylvania passed a partial summary judgment against Koresko, PennMont Benefit Services, Inc., and Jeanne Bonney stating that assets had indeed been transferred to non-trust accounts. This happened just a short while after MMWR started representing Korekso. Despite the ruling by the US District Court for the Eastern District of Pennsylvania, MMWR did not stop representing Koresko or his alleged associates, and even failed to withdraw its appearance on behalf of the parties.
In fact, the lawsuit claims that MMWR allegedly received payments worth $1.4 million from the trusts to represente of Koresko and his alleged co-associates. The class action lawsuit, brought under the Employee Retirement Income Security Act of 1974, is asking that all fees be reimbursed by MMWR to the respective trust funds.
The plaintiffs in the case are Dr. Harvey Kalan, the Harvey Kalan, M.D., Inc. Employee Welfare Benefit Plan, Gretchen Castellano, Dr. Pamela K. Erdman, the Dr. Pamela K. Erdman, M.D., Inc. Employee Welfare Benefit Plan, Drs. Martin and Elisa Zenni and the M&E Zenni, Inc. Welfare Benefit Plan. Ira B. Silverstein of Feldman Morgado, PA in New York City is representing the plaintiffs.
The need for a Qualified Tax Attorney
The need to hire a qualified and experienced tax attorney is paramount especially when dealing with sensitive concepts such as a trust fund. People need to feel safe that their money is in good hands. A tax attorney who comes highly recommended and who has proved his mettle in the field within which he operates is an asset to any case.
A tax attorney will ensure that all the necessary paperwork involving a trust fund or a will is properly documented, written up, and signed. A tax attorney who is trust-worthy is an asset to any case, especially those involving large sums of money. The best way to find someone who is qualified and trust-worthy is to do your research and ask friends and family for recommendations.