Ronald Scott Shirley v Universal Life Resources
Insurance Companies Sued for RICO Violations
A class action lawsuit has been filed in the District Court of Southern California against Universal Life Resources (ULR), an insurance broker that provides professional services concerning sponsorship, implementation and/or modification of employee-benefit plans, alleging conspiracy and fraudulently marketing, selling and administering insurance products through employee-benefit plans. Class members seek declaratory and injunctive relief, damages, costs and expenses of the action.
Specifically, the complaint alleges that Ronald Shirley is employed by Intel, Inc. who sponsors an employee benefit plan where employees can purchase insurance products. On behalf of Intel, ULR provided insurance to Shirley who was damaged by ULR's conduct. Shirley claims that ULR has secretly conspired with the other defendants listed in the action to steer its clients to them under arrangements that permit ULR to collect undisclosed fees and kickbacks.
These actions allegedly permit the defendants to collect higher premiums than would be paid in a truly competitive market. The class alleges that the defendants breached fiduciary duties, engaged in conspiracy in violation of RICO (the Racketeer Influenced and Corrupt Organizations Act), and fraudulently concealed this scheme.
