Compliance April 16, 2010

Jury Convicts Fla. Man of Pension Embezzlement

April 16, 2010 (PLANSPONSOR.com) – A Florida man was convicted by a Detroit federal court jury of charges that he embezzled more than $5.3 million from more than 40 investors including participants in a workplace retirement savings plan.
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A U.S. Justice  Department news release said Anthony A. James of Parkland, Florida was accused of committing the actions from 2001 through June 2009. He was convicted of seven counts of mail fraud, six counts of wire fraud, and one count of embezzlement from an employee benefit plan.

Prosecutors alleged that among the swindled investors, were the owners and employees of Advocate in Manpower Management, Inc. (AIMM), of Boca Raton, Florida, who wired money to James for investment in the AIMM, Inc., Simple Individual Retirement Account Plan. The Justice Department said James represented to investors and pension plan participants that he would place their money in investments, including securities, bonds, and mutual funds for their benefit.

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However, rather than invest the money as he represented, James used it for his personal use which included purchasing two residences, buying several cars, and paying his living expenses. James spent approximately $2.5 million of victim investor money for his own personal use and approximately $2.8 million of victim investor money to pay back other prior investors.

Mail and wire fraud carry a maximum penalty of 20 years imprisonment and a $250,000 fine. Theft or embezzlement from an employee benefit plan carries a maximum penalty of five years imprisonment and a $250,000 fine.

Benefits April 16, 2010

Employees Identify Potential Retirement Plan Offering Improvements

April 16, 2010 (PLANSPONSOR.com) – A survey from ING U.S. Retirement Services shows that those in a workplace plan are more confident, informed, and proactive when it comes to their savings.
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More than eight out of ten respondents (84%) who had a workplace plan said they take an active role in managing their retirement savings and investments, compared to only about half (53%) without any type of retirement savings vehicle.    

However, according to a press release, respondents identified a number of ways employers could be more proactive in facilitating and stimulating employee savings, including:

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  • Offering a diversity of investment options within their plans (88%);
  • Making employees aware of what their current accumulated savings account balance would be if converted into a monthly income stream upon retirement (84%);
  • Providing more education and tools to help employees better understand how to save (83%);
  • Offering a workplace retirement plan, regardless of the employer’s size (76%); and
  • Incorporating plan strategies to make saving easier and more automatic for employees (75%).

According to the findings, a majority of Americans believe the current private retirement savings system is not at all broken. In addition, nearly three-quarters of those polled (74%) agreed – and almost half (49%) strongly so – that saving for retirement was an individual’s responsibility and not the government’s job.  

The ING Survey, Beyond the Politics and Pundits: What Americans Think about the Private Retirement System, was conducted by Ipsos Public Affairs from March 18-22, 2010, and polled a randomly-selected sample of 1,000 adult men and women nationwide.

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