- COLOR OF LAW FILES
- Consumer ALERT
- FOR SALE ADS
- FREE STUFF
- Health Lifestyle
- Hermann MO Student News
- Local Stories (Hermann)
- Mid-Missouri Area News
- Money and Markets
- Music Videos
- National News
- Senior News
- Sports (STL KC Mizzou)
- TECH News
- Veteran News
- World News
- ► September (126)
- ► August (56)
- ► July (48)
- ► June (133)
- ► May (200)
- ► April (195)
- ► March (245)
- ► February (295)
- ► January (366)
- Money and Markets - Emerging Markets VIDEO
- WEB VIDEO: Can't You Hear Me Knocking - The Rollin...
- WEB VIDEO: All Right Now FREE Paul Rodgers turns...
- BREAKER BREAKER Code 10-3: Feds propose cellphone ...
- 'Tron: Legacy 3D' Sequel Opens #1 For Disney 28 Ye...
- Bank Of America Joins MasterCard PayPal Won't Hand...
- Man held on charges of killing wife at Jefferson C...
- Missouri Governor Jay Nixon: No prison closings; S...
- Jon Stewart Reports on a REAL NEWS Story Nobody El...
- New Worries for 401(k) Investors 191 investigation...
- Hermann High School Girls Basketball: Ashley Brook...
- Hermann High School Girls Basketball: Shelby Winke...
- Hermann High School Boys Basketball: Philip Wright...
- Hermann High School Boys Basketball: Craig Winkelm...
- Hermann High School Boys Basketball: Ethan Kirchho...
- Hermann High School Boys Basketball: Jake Schannut...
- St. Louis is one of at least two cities still vyin...
- Fed Proposal on Debit Card 'Swipe Fees' Could Cost...
- Good Samaritans Face Fine After Rescuing Deer From...
- ▼ Dec 18 (19)
- ► November (236)
- ▼ December (327)
Saturday, December 18, 2010
New Worries for 401(k) Investors 191 investigations into 401(k) fraud and theft, and secured 20 indictments
Retirement savers have already learned how much damage the markets can do to a nest egg. But for anyone with a 401(k) plan, stock market performance may be overshadowed by other worries: fraud and theft.
In the last three months, the Labor Department has launched 191 investigations into 401(k) fraud and theft, and secured 20 indictments — a whopping 43% more than the department has secured annually, on average, since 1995. The millions at stake in recent cases may seem small in the context of the $3 trillion 401(k) market, but observers say the indictments point to larger issues in the 401(k) marketplace, from lack of oversight and an understaffed enforcement agency to the larger risks that have shifted over time to individual participants. The cases, says Brandon Reese, deputy director of the office of investment at the AFL-CIO, "expose a more systemic problem in the defined contribution retirement system."
The Labor Department beefed up its enforcement efforts this fall in response to growing indications of trouble with retirement plans. There were more reports of fraud, said Phyllis Borzi, the assistant secretary of the Employee Benefits Security Administration, the division of the DOL that's leading the charge. There were more cases where the perpetrators apparently intended to keep the stolen money, as opposed to the more sympathetic case of a struggling business owner juggling funds to meet immediate business needs. And the department is seeing more repeat offenders — perpetrators who have raided employee benefits plans two or three times before, says Jeffrey Hinman, EBSA's deputy director for criminal enforcement. These, and other "badges of fraud," like behavior that went on for a long time, or a perpetrator who lied to employees about what was happening with the plan, make a criminal case, as opposed to a civil one, he says.
Given the recent economic climate, the increase in cases is not entirely surprising. In tough times, employers are more likely to raid their employees' retirement funds, observers say, whether for personal gain, or to stretch to cover business expenses. This is especially true at small, private companies, where 401(k) plans are often run by a single person, like the company's president or accounts manager. "In a larger setting, you have more eyes on the plan," says David Certner, legislative policy director for the AARP. Publicly-traded companies also face stricter regulation on their accounting procedures under the Sarbanes-Oxley Act.
The Labor Department's investigations touch fewer than one out of every 2,600 of the 401(k) plans nationwide, and an even smaller fraction of the 60 million participants. It seems so small to some that the department has been criticized for spending time and money on such cases.
So what does it take to catch a 401(k) thief? It's easy — if you check your account balance regularly and read the statements you get in the mail, says Scott Holsopple, the president of Smart401k, a web-based retirement service for retirement plans. Make sure you know how much money should be flowing into your account and how it's supposed to be invested. "If you're actively involved, it's going to be a lot harder for your employer to take money from you," Holsopple says.
The Labor Department's top 10 warning signs:
1. Your 401(k) or individual account statement is consistently late or comes at irregular intervals
2. Your account balance does not appear to be accurate
3. Your employer failed to transmit your contribution to the plan on a timely basis
4. A significant drop in account balance that cannot be explained by normal market ups and downs
5. 401(k) or individual account statement shows your contribution from your paycheck was not made
6. Investments listed on your statement are not what you authorized
7. Former employees are having trouble getting their benefits paid on time or in the correct amounts
8. Unusual transactions, such as a loan to the employer, a corporate officer or one of the plan trustees
9. Frequent and unexplained changes in investment managers or consultants
10. Your employer has recently experienced severe financial difficulty
. Click Here for more info.
http://HermannHearsay.blogspot.com/(Hermann Area News, Commentary & Discussion)
SCHOOL CLOSINGS UPDATED EVERY 2 MIN. CLICK BELOW!!!
Top Ten Viewed Stories / Last 7 Days
_________________________________________________________________________ Baltic Sea letter in a bottle found 24 years later By ...
________________________________________________________________________________ In 2009, Missouri paid more than 60,000 active public em...
_________________________________________________________________________ CONGRATULATIONS!!! Here is the Hermann High School second semes...
___________________________________________________________________________________ Fredericksburg Ferry, Gasconade River, Gasconade County...
55-foot Sea Ray Yacht _________________________________________________________________________ Busch IV's boat gets towed at the La...
Chicago Bears Fans Burn Jersey of Losing QB Jay Cutler After NFC Title Game loss To Green Bay Packers_________________________________________________________________________________ Jay Cutler under attack for leaving Bears' loss with ...
VIDEO: Politicians Are Bought GET MONEY OUT OF POLITICS - MSNBC Dylan Ratigan Discusses Separation of Business and State, OWS . . ______...
Could Crest Late Monday, Floodgates Opened Near New Orleans!!! UPDATE: Mississippi River Flood Memphis to Crest Wed. May 11 2011 in Tennessee NEAR RECORD LEVEL. . . River rise spurs spillway opening near New Orleans May 9, 2011 NORCO, La. (AP) -- The rising Mississippi River...
_________________________________________________________________________ Basehunters chasers Isaac Pato, Colt Forney, Scott Peake, and Kev...
_________________________________________________________________________ `Beverly Hillbillies' actress sues Barbie maker By MICHA...
Hermann MO News TOP 10 Stories/ Last 30 Days
Bald Eagle Nest Cam 3 Eaglet Chicks April 7th Seven Weeks Later Juveniles NOT FLYING YET VIDEO UPDATE: LIVE Bald Eagle Cam Added to Hermann Mo News Web PageMay 27, 2011 ________________________________________________________________________ LIVE VIDEO CAM IS EMBEDDED ON 'HERMANN MO NE...
__________________________________________________________________________________ Girls Busted For Phony Facebook Pages Cops: Lewd profile...
_________________________________________________________________________________ Zodiac Signs Change? _________________________________...
_________________________________________________________________________________ Who says the Amish don't know how to have fun? Act...
_________________________________________________________________________ 'Gnomeo & Juliet' wins box office on Oscar weekend ...
Average Penis Size by Country World Map an Internet Web Sensation TOO MUCH INFORMATION FOR ANY TOM, DICK or HARRY...lol_________________________________________________________________________ Who has the biggest penis? According to this map, he isn't Au...
_________________________________________________________________________________ The opening weekend of the firearms deer hunting season ...
______________________________________________________ Quadrantid meteors streak across the sky above Banff National Park in Alberta, Cana...
Top 10 Stories - All-Time (Oct. 14,2010 Inception)
Kim Kardashian ______________________________________________________________________________ You searched and searched. And what - or ...
Japan Fukushima Daiichi Nuclear Power Plant: Radioactivite seawater highest-ever level recorded in history UPDATE: Japan Radiation fallout affecting food safety across North America UPDATE: ROBOT VIDEO RELEASED UPDATE: Japan Radiation Found in East St. Louis UPDATE: Nuclear Nightmare VIDEO: Japan Nuclear Plant New Threats Could Persist Indefinitely Warn U.S. Government Engineers !!! UPDATE: Radiation Level in Japan Seawater Millions of Times Above Legal Limit UPDATE: Japan Radiation Fallout Detected In Illinois UPDATE: Radiation Detected Throughout U.S. from Japan Nuclear Fallout UPDATED: Japan Fukushima Fallout Reaches U.S.A.Level of Radioactivity in Seawater near Fukushima Plant Near Hitting Record www.arirang.co.kr April 26, 2011 The amount of radioactivit...
THE BEATLES- HERE COMES THE SUN - Music Video - Poor Richard 2011 B-Day 52nd thank you Lord for another morning____________________________________________________________________________________ " Here Comes the Sun " is a song by George ...
Rising floodwaters spread across the runway of the airport at Rockhampton, in eastern Queensland. _________________________________________...
_________________________________________________________________________ Convicted rapist and kidnapper in Hornbeck case stabbed multipl...
________________________________________ World War II Pearl Harbor Veteran Tribute & Memorial...Thank You For all That You Have Done!!...
_________________________________________________________________________ Miss Universe entrant Catalina Robayo 'reprimanded for not w...