Education and Workforce Committee Renews Call to Probe EBSA for Alleged ‘Power Abuse’

The committee has once again urged the Department of Labor’s Office of Inspector General to investigate claims that the Employee Benefits Security Administration disclosed confidential plan information to a plaintiff’s attorney.

The U.S. House Committee on Education and the Workforce has re-issued a request that the Department of Labor’s Office of Inspector General investigate allegations that DOL personnel shared confidential information regarding pension benefit plans with a plaintiff’s attorney.

Committee Chair Tim Walberg, R-Michigan, sent a letter Thursday to Inspector General Larry Turner, requesting that he investigate an instance in which the DOL shared “confidential retirement plan information” involving at least six employee benefit pension plans with at least one law firm—Cohen Milstein Sellers & Toll PLLC.

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The request reiterates a similar request made when then-Chair Virginia Foxx, R-North Carolina, wrote a letter last November urging the OIG to investigate the DOL’s use of common interest agreements and relationships with plaintiffs’ law firms that affect employee benefit plans and their fiduciaries.

Walberg wrote in his letter, “As we saw in the first [President Donald] Trump administration, career bureaucrats have sought to undermine the goals of the President and his cabinet Secretaries. We know of cases where bureaucrats have leaked sensitive information or are working with plaintiffs’ attorneys to skew court cases against employers.”

Walberg said the committee’s oversight work brought to light how the Employee Benefits Security Administration is “abusing its authority to secretly share information with class action law firms.”

“This is a blatant abuse of the law, and our Committee will hold EBSA accountable,” Walberg wrote.

In response to Foxx’s letter, a spokesperson for Cohen Milstein Sellers & Toll told PLANSPONSOR in November that common interest agreements between the DOL and private sector are “common, legal and have been entered into by different administrations for decades.”

However, Walberg claimed the plan sponsor community was unaware that EBSA was commonly feeding employee benefit plan information gathered during investigations to plaintiff law firms.

Andrew Oringer, general counsel and partner in Wagner Law Group, says while he believes there has been a long history of DOL cooperation in private litigation, such as with friend-of-the-court filings, it seems that the use of common interest agreements by the DOL has been a more recent development.

Oringer says making legal arguments is one thing, but becoming a “de factor co-investigator” at an early stage of litigation could put the DOL on questionable ground.

“Putting aside the question of legal authority and legitimacy, there is a potential problem with perception,” Oringer says. “There are those who view the activity of plaintiffs’ firms as an element of a litigious society that allows settlements to be unfairly extracted in light of high litigation costs and risks, even where the cases might be meritless. The idea that the DOL might effectively become an active investigative ally of the plaintiffs’ firm under these circumstances could feed into those kinds of objections.”

The House committee has requested that the OIG investigate the practice, including whether the DOL shared information with other firms, and publish a public report.

The lawsuit in which confidential information was shared was Harrison v. Envision Management Holding Inc. Board of Directors et al., filed in U.S. District Court for the District of Colorado in January 2021, in which Envision Management was accused of breaching its fiduciary duties for mismanaging its employee stock ownership plan.

According to Foxx’s letter, the common interest agreement between the DOL and the law firm is dated April 21, 2023, but it does not disclose when the information was shared.

A DOL spokesperson did not immediately respond to a request for comment.

Advisory M&A News – 1/27/25

NFP acquires Tycor Benefit Administrators and expands presence in the Philadelphia area; Wealth Enhancement announces acquisition of VanceGray Wealth Management and Northwest Investment Counselors; Citizens deepens investment in Florida with addition of $700 million advisory team.

NFP Acquires Tycor Benefit Administrators Expands Presence in the Philadelphia Area 

NFP acquired of Tycor Benefit Administrators, Inc., a multidisciplinary professional services firm based in Wayne, Pennsylvania. Founded in 1980, Tycor manages and advises approximately $500 million in assets. 

The firm works with clients in Philadelphia and the tri-state area, focusing primarily on providing third-party administration recordkeeping and retirement services while also offering employee benefits, wealth management services, financial planning and individual insurance products. 

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The principals of Tycor, Lauren Stuart and J. Timothy Corle, will join NFP as senior vice presidents and report to Jessica Espinoza, managing director of Retirement in NFP’s Atlantic region. 

“I’m excited to welcome Lauren, Tim and the Tycor team to NFP,Espinoza said, in a statement. “This acquisition is a great opportunity to grow our presence in the greater Philadelphia market and round out our capabilities. Were especially looking forward to expanding our ability to scale our retirement plan advisory and third-party administration services nationally with Tycors offerings. 

Wealth Enhancement Announces Acquisition of VanceGray Wealth Management and Northwest Investment Counselors  

Wealth Enhancement has announced the acquisition of two independent RIA firms: VanceGray Wealth Management, Inc., inBangor and Ellsworth, Maine and of Northwest Investment Counselors, in Lake Oswego, Oregon.  

VanceGray is a team of four advisers and six support staff oversees more than $409 million in client assets and is led by Vance Gray, president. Northwest Investment Counselors, led by Mark Scarlett, principal, portfolio manager, Matthew Roehr, principal, portfolio manager, and Michelle Castano Garcia, principal, wealth manager, is team of five advisers and three support staff overseeing more than $673 million in client assets. 

Founded in 2006, VanceGray Wealth Management offers investment and asset management, retirement planning, customized tax strategies, and comprehensive estate planning. VanceGray Wealth Management specializes in working with retirees, seniors, small business owners, and individuals with a desire to grow their financial future. 

Founded in 1998, Northwest Investment Counselors operates under the principle ‘Live well, retire better.’ The firm supports clients from initial investing and navigating finances after major life changes to retirement and estate planning. Specializing in investment management, trust services, and financial planning, Northwest Investment Counselors primarily serves clients based in Oregon and Washington. 

Citizens Deepens Investment in Florida with Addition of $700 Million Advisory Team 

Citizens Financial Group, Inc. further expanded its wealth management reach in southern Florida. 

Citizens Private Wealth added a team of wealth advisers led by Dustin Smith and James Rubinton, who bring more than six decades of combined experience to the firm.  

Based in Naples, these senior advisers specialize in customized wealth management solutions for high-net-worth and ultra-high-net-worth individuals, families and businesses, having previously managed nearly $700 million in client assets. This Naples-based team follows the addition of a wealth advisory team based in Boca Raton, Fla. in the fall. 

Dustin and James’ dedication to their clients and shared vision for providing outstanding wealth management solutions make them an excellent addition to our organization,” Paul Casey, head of Wealth at Citizens, said in a statement. 

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