Scottsdale CEO Indicted for Embezzling from Retirement and Health Plans
The CEO and founder of a company that processes employee benefits for employees of federal contractors was indicted last Friday for allegedly embezzling more than $2.4 million from an ERISA benefit plan to fund exotic hunting trips to Africa and Alaska.
According to a Department of Justice press release, James Vincent Campbell, 47, of Scottsdale, Ariz., was charged with a single count of theft from an ERISA plan and 11 counts of money laundering. Campbell entered a “not guilty” plea Friday, according to a report on Fox10 Phoenix.
At the time of the alleged thefts, Las Vegas-based Axim Fringe Solutions Group, LLC was headquartered in Maryland. According to court documents unsealed Friday in the District of Maryland, the indictment alleges Axim’s clients sent funds to the company to pay for 401(k) retirement contributions and health insurance premiums. Axim was responsible for forwarding those funds to insurance carriers and retirement accounts, charging clients a contractual fee of $40 per employee per month for its services.
Before forwarding the funds, Campbell allegedly pooled them in a master trust account. Between 2015 and 2024, he made 135 unauthorized withdrawals—totaling $2,486,905—beyond the legitimate fees owed to Axim. Campbell is accused of using a significant portion of the stolen funds for personal expenses including big game hunting trips in Alaska, Africa, and other locations; taxidermy fees; jewelry; casino gambling; and direct payments to his girlfriend.
If convicted, Campbell faces a maximum penalty of 10 years in prison for each count of money laundering and up to 5 years for theft from an ERISA plan. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division and Acting Assistant Secretary Janet Dhillon of the Labor Department’s Employee Benefits Security Administration made the announcement. The Employments Benefits Security Administration of the Labor Department is investigating the case.
The DOJ release notes that an indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
AXIM Fringe Solutions Group bills itself on its website as the nation’s first and only health and welfare administration and compliance firm that is also a government contractor. AXIM FSG partners with government contractors as an SDVOSB (Service-Disabled Veteran-Owned Small Business) providing consulting, benefits administration, and DOL/ACA compliance for wage determination contracts (Service Contract Act and Davis-Bacon Act).
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Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
