Arizona CEO Pleads Guilty to Embezzling Over $8,800,000 Million from Employee Benefit Plans
Federal prosecutors have secured a guilty plea from the chief executive of a company that handled benefits for federal contractors and diverted more than $8.8 million from employee health insurance and retirement plans.
James Vincent Campbell, 49, of Scottsdale, Arizona, pleaded guilty in the District of Maryland to one count of theft from an Employee Retirement Income Security Act (ERISA) plan, says the U.S. Department of Justice.
Court documents show that Axim’s clients transferred money to the company to cover health insurance premiums and 401(k) contributions, with the firm responsible for sending the funds to insurers and retirement accounts.
Before forwarding those payments, Campbell pooled the money in a master trust account. Prosecutors say that from 2015 through 2024, he made 135 unauthorized withdrawals totaling $2.49 million, taking funds beyond the legitimate fees Axim was owed.
Campbell spent a substantial portion of the money on personal expenses, including big-game hunting trips in Alaska, Africa and elsewhere. He also splurged on taxidermy, jewelry, casino gambling and payments to his girlfriend. After moving Axim to Arizona, Campbell continued the scheme by secretly charging some clients as much as five times the fees they actually owed the company.
Overall, Campbell allegedly diverted more than $8.8 million from Axim’s clients through unauthorized withdrawals from the master account and repeated overcharging of client fees.
Says Assistant Attorney General A. Tysen Duva of the Department of Justice’s Criminal Division,
“Workers have a right to trust that when they contribute portions of their hard-earned wages into their health insurance and retirement accounts, those contributions will go to where they were intended – their health plans and 401(k) accounts. Instead, James Vincent stole directly from these accounts by embezzling funds and putting more than $8 million into his own pocket. ”
Campbell faces up to five years in prison at sentencing by Federal District Judge Lydia Kay Griggsby.
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