So $51k of my money went missing....

[HardDrive]

Very ominous thing happened today. Perhaps its no big deal. But I'm concerned.

Some of my retirement $ was in an old 401k plan with a former employer. I rolled it over to an IRA when I left the company, but the owner of my former company was still listed as an account administrator. Vanguard stopped offering the type of account in question (sorry, I don't have further info about that yet), so my former boss had the funds transfered to a pooled account. I do not have access to this account. I spoke with another employee, and the same thing happend to their account.

I tracked the guy down today, and he promptly returned my call. He told me that I would be getting a roll over check to take elsewhere.

I am extremely suspicious of this individual. His former company went bankrupt, and he left a pile of unpaid bills. He's a total BS artist. Am I correct in being wary of the situation? Whats to prevent this guy from just liquidating the account and skipping town?

[RWebb]

write a letter that contains the facts of your conversation; send it to him via regular mail & certified mail tomorrow

start looking up info on how to contact Wash. state's fraud unit (usually in the AG's office) and for a private attorney

[Vonzipper]

Or send Guido and Rocco over to help him find his checkbook

Good luck

[jhynesrockmtn]

I married an anesthesiologist.

Good thing you did that.

You rolled the money into an IRA but your former boss was still listed on the account? That in and of itself smells bad. Hopefully it will work out. When I change jobs I roll everything into a self managed IRA with a reputable company. Find an advisor you and others trust and have them help you sort through this. A lawyer may be needed or a big guy with a lead pipe.

[Joeaksa]

Contact your state DA or prosecutor immediately. Send them copies of your documentation and get them on it NOW.

[stomachmonkey]

Sounds bad.

One of my 1st good jobs offered profit sharing, 10% of annual salary if the co showed a profit.

Vested in 10% increments for every year of employment, fully vested in 10 years.

I ended up staying a little longer as I was getting close.

Owner announces a "New and Improved" retirement policy which was funded by the profit sharing account.

He was the oldest one in the company.

So eventually we get our statements and I flip out, almost all my money was gone.

I go talk to my buddy Bobby who started same month as me, held the same position, made the same base BUT was 12 years older. He's got 10x's what I got.

Company Finance officer explains our "retirement" accounts were funded pro rated by age so the closer you are to 65 the more you got but at age 65 we would all end up with the same amount.

I asked her if she really thought I'd be here another 40+ years much less the business.

Did I mention the owner turned 65 that year?

I quit right then and there. Insult to injury, I forgot to claim it on my taxes that year and the penalties and fines were in excess of the amount I received.

Next company I worked for rolled out a 401k. I declined to contribute and my co-workers wondered why. Said if there is a way to get f'd by the company trust me, it will happen.

So even though I did not contribute I used to get statements for like $0.18. When I questioned it was told that everyone in the company needed an account whether or not we actually contributed so I used to just throw them away unopened whenever they came in.

Business goes bankrupt and all the 401k's get locked by the administrator.

The companies CFO, on advice of his attorneys, refused to sign any paperwork that would allow Oppenheimer, the financial institution, to release the accounts.

Eventually he did but the next step was that everyone in the plan needed to sign and return paperwork before they could release any funds. Remember those statements I (and a ton of co-workers) used to get that we just threw away? Yup, none of us paid attention to subsequent mailings form Oppenheimer because we had no funds there.

Result was that for 5 years no one could touch their money or manage their accounts. If you had aggressive investments that were taking a hit there was nothing you could do but watch it vanish.

[masraum]

Wow, that story sucks. My experience has always been the opposite.. My 401ks have always worked out fine. When I was in college, I worked part time at a grocery store bagging groceries. Years later I ran my name through one of Thor unclaimed funds websites and discovered that I had a couple hundred dollars worth from some sort of acct that the company had opened for me.

[HardDrive]

Not liking this at all. I have an e-mail question out to this guy. If I don't get a response, certified letter is going out tomorrow.

[tabs]

Originally Posted by HardDrive

Not liking this at all. I have an e-mail question out to this guy. If I don't get a response, certified letter is going out tomorrow.

Is his mailing address the cell next to Bernies.?

[stomachmonkey]

I'd be gettin all over this as fast as possible.

If all your former co-workers are in the same boat the ones with a positive result may be the ones that reacted fastest and strongest.

[LWJ]

There are ERISA statutes to protect you in this situation. Also, the fiduciary has PERSONAL liability on the plan. You might have a fight but I think you will be ok. Keep us posted.

Larry

[HardDrive]

Most of the folks I have spoken with have said that they doubt this guy is doing something criminal. I doubt it too. He stikes me as more 'inept bungler' than 'criminal mastermind'. He doesn't appear to be trying to hide out either.

[Crowbob]

If it were me, now is not the time to panic; that would have been yesterday.

[MBAtarga]

Is his last name Madoff?

[HardDrive]

Originally Posted by stomachmonkey

I'd be gettin all over this as fast as possible.

If all your former co-workers are in the same boat the ones with a positive result may be the ones that reacted fastest and strongest.

I called my attorney.

[HardDrive]

Workers in bankruptcy situations face two important issues when it comes to their retirement benefits: access to pension benefits and the continued safety of their pension assets. Generally, your pension assets should not be at risk when a business declares bankruptcy, because ERISA requires that promised pension benefits be adequately funded and that pension monies be kept separate from an employer’s business assets and held in trust or invested in an insurance contract. Thus, if an employer declares bankruptcy, the retirement funds should be secure from the company’s creditors. In addition, plan fiduciaries must comply with the ERISA provisions that prohibit the mismanagement and abuse of plan assets. If contributions to a plan have been withheld from your pay, you may want to confirm that the amounts deducted have been forwarded to the plan’s trust or insurance contract.
In addition, some pension benefits may be insured by the Federal Government. Traditional plans (defined benefit plans) are protected by the Pension Benefit Guaranty Corporation (PBGC), a Federal Government corporation. If a plan is terminated because an employer has financial difficulty and cannot fund the plan, and the plan does not have enough money to pay the promised benefits, the PBGC will assume responsibility for the plan. The PBGC pays benefits after termination up to a certain maximum guaranteed amount. On the other hand, defined contribution plans, such as 401(k) plans, are not insured by the PBGC.
In the event the pension plan is terminated, the plan must vest your accrued benefit 100 percent. This means that the plan owes you all the pension benefits that you have earned so far, even benefits you would have lost if you had voluntarily left your employment. ERISA does not require that pension benefits be paid out before normal retirement age, usually age 65. Your plan may provide for distribution sooner than this. Some plans require participants to reach a certain age before benefits will be distributed, and some require the participant to have been separated from employment for a specified period of time. You should review the summary plan description for the plan rules regarding payment of benefits. Also remember that taking a distribution of pension benefits before retirement may have important tax consequences. You may need to consult with a tax advisor before accepting the distribution.

[stomachmonkey]

Quote de stomachmonkey

I'd be gettin all over this as fast as possible.



If all your former co-workers are in the same boat the ones with a positive result may be the ones that reacted fastest and strongest.

I called my attorney.

Smart. That's a big chunk o change. Spend 1k to save 50? No brainer.

[cgarr]

They said it when into a "pool" Does the guy have a new pool by any chance?

[HardDrive]

Originally Posted by cgarr

They said it when into a "pool" Does the guy have a new pool by any chance?

Ha ha, very funny.