San Francisco - Charles V. Mugrdechian, Jr., pled guilty January 25, 1999, in U.S. District Court for the Eastern District of California, Fresno, to three counts of embezzlement from the Mid-Valley Employers Trust Group Insurance Trust (also known as Key Advantage Trust), a trust that was set up to provide medical insurance to the employee welfare benefit plans of small employers, the U.S. Department of Labor reported today.

According to Bette Briggs, acting regional director for the Labor Department's Pension and Welfare Benefits Administration (PWBA) here, Mugrdechian, operator of Ararat International Administrators, which contracted to provide certain services tot he plans, became a trustee of the trust and selected insurers who failed to pay the medical claims. The assets of the trust were subject to Title I of the Employee Retirement Income Security Act of 1974.

On July 19, 1997, Mugrdechian, along with his wife, Ardemis A. Mugrdechian, had been indicted for nine counts of conspiracy, embezzlement, money laundering and wire fraud in connection with their handling of the trust funds. Ararat ceased to operate as an administrator in Fresno in 1995. Though the amount of unpaid medical claims is disputed, the Labor Department alleges that unpaid claims from 1989 could total $5 million.... (more)

To view the complete press release, visit www.dol.gov/dol/pwba/public/media/press/pr012899.htm