Over 350 businesses and a phony medical reimbursement account program run duped 4,400 employees out of $48 million by a Covington couple.
According to reports, U.S. District Judge Carl Barbier sentenced Denis Joachim, 55, on Thursday to eight years and one month in prison and a further three years on probation. There was a three-year supervised release for Donna Joachim, 55.
In a hearing scheduled for June 9, Barbier, the judge selected by President Clinton, will consider ordering restitution.
A 26-foot boat, personal watercraft, a Chevrolet Corvette, and a Dodge Wrangler, among other vehicles, are among the assets that must be surrendered by the defendants, along with their home and two other residences in Madisonville, Tennessee, as well as 40 acres of property in Bush and 125 acres in Spring City, Tennessee.
As a result of this arrangement, you will be reimbursed
Employers were supposedly provided a “supplemental benefits package” by the couple’s company, The Total Financial Group, which reimbursed employees for co-insurance and deductibles. Classic 105 was the name of the show.
A tax-exempt monthly contribution of between $1,000 and $1,600 was made by an employee (which reduced the employee’s taxable income), a loan from a lender was returned to the employee to make up for the contribution, an insurance policy payable to the lender was payable at death by the employee and fees were paid by the employee and employer, according to the U.S. attorney’s office.
It was claimed by Total Financial Group that participants would never have to pay back the loan out of their own pockets and that they would see a rise in their net take-home pay as a result of the tax savings.