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Benefits TPA CEO pleads guilty to $8.8M ERISA fraud
The CEO, James Vincent Campbell, used a master trust account to make 135 unauthorized withdrawals totaling $2,486,905 and also inflated client fees after moving his company to Scottsdale.
Insurance Business reports that the CEO and founder of Axim Fringe Solutions Group LLC, James Vincent Campbell, pleaded guilty to embezzling more than $8.8 million from an ERISA benefit plan.
According to the US Department of Justice, Campbell spent nine years diverting client health insurance premiums and 401(k) contributions that Axim was responsible for forwarding to carriers and retirement accounts.
The scheme involved pooling the funds in a master trust account and making 135 unauthorized withdrawals totaling $2,486,905 between 2015 and 2024, beyond legitimately owed fees, the outlet said.
After relocating the company to Scottsdale in January 2022, Campbell allegedly increased the fraud by secretly charging clients up to five times the contractual fee, between the withdrawals and fee inflation for the unlawful total, Insurance Business reported.