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allstaff / ERISA Violations

1 GA, United States Review updated:
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Another ALLSTAFF Cover up, New Federal Investigation

The US Department of Labor delivered a certified letter to Greg Bennett of Total HR Solutions on November 10, just a few weeks ago.

"I am thoroughly disqusted with Allstaff's continued mismanagement of taxes" said Mr. Bennett when asked for his comment on Saturday. "More borrowed tax money, but this one looks more like a cover up to me".

Federal Prosecutors alleged that Total HR has violated ERISA laws for the period of January to August 2009, a total of 111 ERISA violations.

Mr. Bennett said "the only problem is, we were locked out of the system January 1, 2009 when Allstaff illegally seized our assets claiming they had been lied to. In his brief statement, Mr. Bennett said "I can't wait to meet Federal Prosecutors and show them what Allstaff has done. These guys are reckless".

In a letter from federal prosecutors dated November 10, 2010, Federal Prosecutors alleged 111 2009 401K ERISA violations. In an apparent attempt to cover their tracks for the ERISA violations, Allstaff appears to have shift blame to Total HR Solutions, the same company they acquired on December 31, 2008.

On January 1, 2009 Allstaff became the statutory employer of all the Total HR Solutions employees and began managing the benefit plans including the Slavic 401K . ALLSTAFF calculated and deducted all participant 401K contributions but failed to deposit the money.

"Allstaff even sent a letter claiming they were a SAFE company and had properly managed all of their fiduciary reponsibilities" said Mr. Bennett. "I wonder how they thought they could get away this one. They seized my propery, they trashed my name, locked me out of the building and then they fired key members of my staff. Now they are blaming me for their mistakes".

Our insider sources confirmed that Allstaff was in no financial position to buy, much less manage Total HR's customers. In arbritration, Greg Medley the CFO testified to this effect. Allstaff could not be reach for comment.

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  • Co
      3rd of Jun, 2009
    allstaff - OVERCHARGE for Workers Compensation
    former client
    United States

    Rencently, my company was contacted by a PEO located in Alpharetta, GA offering to do a comparrison proposal between my current PEO, Allstaff and them. They were very confident that I was paying way too much for my workers Compensation coverage as well as benefits and other administration cost. I was shocked and outraged at what Allstaff was charging for workers compensation. Further, I was told that Allstaff makes a large profit off of the workers compensation as well as state unemployment insurance, benefits and other lines of coverage. I am outraged by this ESPECIALLY in this economy!

    If you are currently a client of Allstaff, I suggest you ask for a complete breakdown and do yourself a favor SHOP. At my current PEO's request, I am not able at this time to reveal the name. Once I have permission, I will post with contact information.

    0 Votes
  • Er
      8th of Dec, 2010

    ALLSTAFF HR "Pyramiding" the 941 Taxes

    This couldn't possibly be legal. Allstaff's CFO, Greg Medley, was questioned directly by the Honorable Terrance Croft, the Arbitrator about the growing 941 tax deficit. Mr. Medley's answer was "you are borrowing more and more". Click here and scroll to page 109

    MR. CROFT: How does the tax liability increase over time if the number of employees decreases?

    THE WITNESS: Because there could be moneys used for legal or for any number of expenses that even though the employee count is shrinking, you are borrowing more and more against that. So you get a little further and further out.

    MR. CROFT: So if you use it to pay other bills instead of to pay that
    in which it was withheld for, that would increase the deficit.

    THE WITNESS: Right. It would take you longer to catch up the prior
    quarter.

    Seems pretty clear cut. Allstaff had to borrow close to $700, 000 from Total HR clients in order to pay their own trailing liabilities and current legal costs.

    According to the IRS, this is a fraudulent practice and is defined below as:

    Pyramiding. "Pyramiding" of employment taxes is a fraudulent practice where a business withholds taxes from its employees but intentionally fails to remit them to the IRS. An often cause is a lack of profit or capital for operating costs, so the business owner uses the trust funds to pay other liabilities. The quarterly employment tax liabilities accumulate (or "pyramid") until the employer has little hope of catching up. Businesses involved in pyramiding frequently shut down or file for bankruptcy and then start a new business under a different name starting the cycle over.

    ALLSTAFF fired Greg Medley on October 22, 2009. When asked if he felt like the 941 tax shortage was the reason he was let go, Mr. Medley stated "probably".

    0 Votes
  • Er
      8th of Dec, 2010

    Scandal, ALLSTAFF HR Diverts $258, 835 in Aetna Premiums
    Sources have confirmed that ALLSTAFF HR MANAGEMENT COMPANY diverted $258, 835.00 in Aetna premiums for July and August 2009. This comes after a Federal Investigation concluded Jim Beesley Allstaff HR Scandalthat ALLSTAFF HR/ Total HR were negligent in its insurance practices. “If Allstaff collected premiums, why should Aetna have to pay?” asked Mr. Gregory Bennett, the former CEO of Total HR.

    The US Department of Labor concluded that Allstaff/Total HR should have remitted premiums for July and August. Instead Aetna was forced to cover the premiums in order to protect the employees covered in the health plan.

    Allstaff HR management company began collecting these premiums in January of 2009 when they illegally seized control of Total HR and Aetna health plan they sponsored. In an email memo dated August 25th 2009 just 8 months after the seizure, Allstaff HR management company repeatedly claims they had proof of their payment to Aetna, providing “lock box” details and a so called “audit”.

    Our sources confirmed the US Department of Labor and Aetna never received the $258, 835. Aetna was forced to pay these premiums to protect the Allstaff HR clients. We also confirmed that Allstaff HR management company never notified Aetna of the illegal seizure of the Total HR sponsored health program yet they collected 8 months worth of premiums.

    Allstaff could not be reached for comment.

    0 Votes

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