1

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF OHIO

WESTERN DIVISION

BENJAMIN YOCUM & HEATHER LTD, 

et al. 

 Plaintiffs, 

vs. 

BLACK WOLF CONSULTING, INC., 

et al. 

 Defendants. 

) CASE NO.: 1:17-CV-00850

)

) Judge Michael R. Barrett

)

) Magistrate Judge 

) Stephanie K. Bowman

)

)

THIRD JOINT STATUS REPORT REGARDING 

RELATED DEPARTMENT OF LABOR LITIGATION

U.S. DISTRICT COURT, N.D. ILL., CASE NO.: 1:17-CV-07931

Pursuant to the May 30, 2018, Memorandum Opinion and Order of United States 

Magistrate Judge Stephanie K. Bowman [Doc.#17], Plaintiffs, Benjamin Yocum & Heather, LTD., 

Thomas R. Yocum, Kathryn K. Mecklenborg, Jose Pedro Santos, Deborah L. Evans, Donna H. 

Moore, and Anthony J. Iaciofano, and Defendant Benefit Plan Administrators, Inc. hereby jointly 

provide the following third status update regarding the Department of Labor litigation filed against 

AEU Benefits, LLC, and other plan fiduciaries and administrators in the U.S. District Court for 

the Northern District of Illinois, R. Alexander Acosta, Secretary of Labor, United States 

Department of Labor v. AEU Benefits, LLC, et al., case number 1:17-CV-007931 (“the DOL 

action”). 

The DOL action continues to proceed against all defendants including AEU Benefits, LLC, 

AEU Holdings, LLC, Black Wolf Consulting, Inc., AEU Holdings, LLC Employee Benefit Plan,

and others, with the exception of defendant SD Trust Advisors, LLC as noted further below. 

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On November 21, 2018, defendants AEU Holdings, LLC and AEU Benefits, LLC filed an 

Amended Cross-Claim and Third-Party Complaint to add a Cross-Claim against SD Trust 

Advisors, LLC, as well as restate its prior Cross-Claim against Black Wolf Consulting, Inc. and 

its prior Third-Party Complaint against Rodney Maynor, Veritas PEO, LLC, James D’Iorio, 

Charles LaMantia, Rick Wilson, Wilson Benefits Services, LLC, and Tall Tree Administrators, 

LLC. 

The docket does not reflect any changes in the Scheduling Order previously issued in the 

DOL action and attached to our prior Joint Status Report to this Court [Doc.#20]. The Illinois 

Court noted repeatedly that the Department of Labor was unaffected by the recent federal 

government shutdown, so no dates or deadlines were altered or amended as a result. 

On January 11, 2019, a Consent Order And Judgement [Doc.#280] was entered granting 

judgement in favor of the Department of Labor on its claims against SD Trust Advisors, LLC and 

the principal of that company, non-party Thomas Stoughton. Stoughton voluntarily submitted to 

the jurisdiction of the Court and the terms of the Consent Order And Judgement. 

That Consent Order And Judgement resolves all matters in controversy between the 

Department of Labor and SD Trust Advisors, with the exception of possible sanctions pursuant to 

ERISA §502(1), 29 U.S.C. §1332(1). It permanently enjoins SD Trust Advisors and Stoughton 

from violating any ERISA provision and prohibits SD Trust Advisors and Stoughton from serving 

as a fiduciary or service provider to any ERISA-covered plan. The Order further requires SD Trust 

Advisors and Stoughton to cooperate with the Department of Labor in connection with the 

continuing litigation and any future lawsuit that may be filed by the court-appointed Independent 

Fiduciary. The Order also requires the payment of $175,000 by Stoughton via a Security Deed on 

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certain real property located in Atlanta. Upon completion of that payment, all claims by the 

Department of Labor against SD Trust Advisors and Stoughton are settled and released. 

South Carolina litigant Hire Quest, LLC intervened in the DOL action seeking clarification 

of the Court’s prior Stay Order, and seeking leave to proceed with its lawsuit in the U.S. District 

Court for the District of South Carolina against a number of defendants named in the DOL action 

and other parties, based upon the contention Hire Quest is not seeking to recover Plan Assets. On 

February 13, 2019, the Court granted the motion and permitted the South Carolina litigation to 

proceed as to the liability of HUB International Midwest Limited, Clint Anderson, Ed McConnell, 

Assurance Agency Ltd., Capitol Administrators, Inc., Black Wolf Consulting, Inc., Rod Maynor, 

Tall Tree Administrators, LLC, Benefit Plan Administrators, Inc., Wilson Benefits, Veritas Health 

Systems Administrator and Insurance Services, Inc., AEU Benefits, LLC, and AEU Holdings. 

[Doc.#302] The Order further provides that in the event Hire Quest settles any claim or receives a 

judgement in the South Carolina litigation, it must submit to the Secretary of Labor and the courtappointed Independent Fiduciary a list of the assets to be applied to the settlement or judgement 

along with an explanation demonstrating why such assets are not part of the AEU Plan and/or 

Participating Plans. Following the opportunity for objections by the DOL and the Independent 

Fiduciary and a possible hearing in the DOL hearing, the Illinois Court may issue an Order as to 

whether the disputed assets are Plan assets covered by the Stay Order or whether such assets may 

be used for purposes of settling or satisfying a judgement in the Hire Quest suit. The Order also 

clarified that the Illinois Court’s prior All Writs Stay Order otherwise remains in full effect pending 

final deposition of the DOL action or until further order of that Court. 

Lastly, the Independent Fiduciary filed a Thirteenth Quarterly Report on February 20, 2019

[Doc.#303]. That Report largely reflects the Independent Fiduciary’s continued efforts to marshal 

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and control Plan assets and address questions and concerns of providers and members. The Report 

also describes the Independent Fiduciary’s continuing efforts to gather information and 

documentation regarding the AEU Plans. It reports that 30,000 medical claims determination 

statements were issued in the summer of 2018, and the Independent Fiduciary has received over 

1,700 appeals, 128 proof of claim forms, and over 200 claims for refunds. A copy of that Thirteenth

Report is attached hereto as Exhibit A for the Court’s reference. 

Respectfully submitted,

/s/ Patrick M. O’Neill

(per 02/25/19 email auth.)_______________

Bradford C. Weber, Esq. (#0068724)

Patrick M. O’Neill, Esq. (#0062519)

Benjamin, Heather, Iaciofano & Bitter, LLC

The American Book Building

300 Pike Street, Ste. 500

Cincinnati, OH 45202-4222

Telephone: (513) 721-5672

Facsimile: (513) 562-4388

Email: bcweber@bhiblaw.com

pmoneill@bhiblaw.com

Counsel for Plaintiffs

/s/ Chad E. Willits___________________

Chad E. Willits, Esq. (#0066541)

Ian D. Mitchell, Esq. (#0090643)

Reminger Co., LPA

525 Vine Street, Ste. 1700

Cincinnati, OH 45202

Telephone: (513) 455-4024

Facsimile: (513) 721-2553

Email: cwillits@reminger.com

imitchell@reminger.com

Counsel for Defendant Benefit Plan 

Administrators, Inc.

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