Arrest Made in Retirement Plan Fraud Case

Arrest Made in Retirement Plan Fraud Case

July 28, 2020

Share this Post

Earlier this month, a federal grand jury indicted an Orange County, California man on charges related to retirement plan fraud. The U.S. Attorney’s Office for the Central District of California reported that the plaintiff has been charged with three counts of bank fraud and one count of aggravated identity theft after allegedly obtaining the personal information of an unspecified number of Boeing employees.

The accused is said to have operated between January and June 2019, during which time he acquired individual information and retirement account data from the individual’s Voluntary Investment Plan accounts, known as a VIP account.

After allegedly placing holds on the Boeing employee’s mail through the U.S. Postal Service, the accused then made fraudulent withdrawal requests of electronic money transfers or the disbursement of checks. In total, he allegedly attempted to obtain approximately $783,328 from the Boeing employee accounts and succeeded in obtaining at least $360,847.

Retirement Plan Fraud Can be a Cybersecurity Risk or a Human Risk

The National Association of Plan Advisors (NAPA) described the accused’s activities as “a fairly elaborate process” and pointed out that,  “As has been the case in other recent instances, the theft was apparently enabled by access to personal information regarding the individuals in question, which led to access to their account (or the process that did so). Most recently it has resulted in litigation against both the plan sponsor and recordkeeper (see Plan Sponsor, RK Sued for Fiduciary Breach in 401(k) Account Hack and Recordkeeper, Plan Sponsor Charged in 401(k) Account Theft).

“While there certainly have been growing concerns about cybersecurity risks, there also have been recent cases where individuals within the sponsoring employer and others in which TPA or recordkeeping staff have taken advantage of their access to misappropriate funds.”

#retirement #retirementplan #planfraud #bankfraud

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. Any tax advice contained herein is of a general nature. You should seek specific advice from your tax professional before pursuing any idea contemplated herein.

Securities offered through Lion Street Financial, LLC (LSF) and Valmark Securities, Inc. (VSI), each a member of FINRA and SIPC. Investment advisory services offered through Lion Street Advisors, LLC (LSA) and Valmark Advisers, Inc. (VAI), each an SEC registered investment advisor. Please refer to your investment advisory agreement and the Form ADV disclosures provided to you for more information. VAI/VSI and LSF/LSA are non-affiliated entities and separate entities from OneDigital and Fulcrum Partners.

Unless otherwise noted, VAI/VSI, LSF/LSA are not affiliated, associated, authorized, endorsed by, or in any way officially connected with any other company, agency or government agency identified or referenced in this document.

Lion Street Advisors // Lion Street Financial

Share this Post