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Benefits October 11, 2005
Manager's "Generosity" Was a Fraud
October 11, 2005 (PLANSPONSOR.com) - A former
manager of a hydraulics company, now out of business, has
been convicted of failing to turn in payroll taxes and
embezzling more than $25,000 from the company's retirement
and health plans.
Reported by Rebecca Moore
The Des Moines Register reports that the manager was convicted of failing to pay more than $371,000 in payroll taxes taken from employees’ checks and embezzling from All-Tech Inc.’s 401(k) and health plans.
The manager bought houses with All-Tech’s money, was liberal with the company’s petty cash and credit cards, and leased more than 40 Cadillacs for himself and other employees, according to the news report.
The manager’s attorney told jurors, “Andrew Armstrong is guilty of a lot of things…But the thing he’s guilty of more than anything else is generosity to his employees.” According to the Register, the attorney said Armstrong fully intended to pay the payroll taxes but felt the need to reward workers at All-Tech. The company filed for bankruptcy.
“Everything that he did was reasonable,” McGuire said, according to the Register. “He acted in good faith for some of your fellow citizens.”