A New Jersey company claims that a Valhalla health benefits broker owes $5.7 million in commissions and fees for steering union members to the firm.
Tri Health Solutions, Hawthorne, New Jersey, accused Employers Network Association and Nu Era Benefits Agency Inc. both of Valhalla, of fraud, in a complaint filed last month in Westchester Supreme Court.
The complaint also names as defendants Louis DeLuca of Manhattan, his wife Elizabeth DeLuca of New Canaan, Connecticut, and John Poulakos of Wappingers Falls, as owners or officers of both companies.
Tri Health, managed by Anthony J. Cusano, claims that the defendants stopped paying commissions and diverted funds to themselves and entities they controlled because they knew about an impending arbitration award.
The DeLucas and Poulakos did not immediately respond to a telephone message requesting their side of the story.
In 2014, Tri Health made a deal to “introduce” Employers Network to labor unions, particularly Local 713 of the International Brotherhood of Trade Unions.
Employers Network agreed to pay Tri Health from $15 to $25 a month, the complaint states, for each Local 713 member who participated in its health and benefit plans.
Nu Era enrolled union members and administered billing and commissions for Employers Network.
In 2019 Tri Health accused Employees Network of breach of contract in an arbitration case, and last year it was awarded nearly $4.4 million.
Tri Health claims it is also owed more than $230,000 in monthly commissions from November to the present, or about $1.4 million for six months.
Tri Health says Employees Network, Nu Era and its officers have evaded attempts to collect the payments and have ceased communications. The funds have been transferred to Nu Era, according to the complaint, leaving Employees Network with no assets to pay its obligations.
Tri Health charged the defendants with fraudulent conveyance, conversion, civil conspiracy, and aiding and abetting.
It is represented by Westfield, New Jersey attorney Eric B. Levine.
