One impediment to retirement saving is the (often) mistaken belief that the boss will defer funds from payroll and stick it in their desk drawer. Cases like the following don’t help.
Steven Walters, 52, of St. Peters, Missouri, was sentenced to six months in prison, 90 days of home confinement and three years of supervised release in prison for embezzling from an employee retirement plan.
Walters appeared in federal court Tuesday before U.S. District Judge Rodney Sippel.
According to court documents, Walters began his employment with telecommunications contractor Synergy Concepts in August 2001, and by 2014 was its vice-president.
Walters, on behalf of the company, acted as the co-trustee for a company retirement plan that was funded from voluntary contributions by the employees. From May of 2015 through August 2016, according to prosecutors, Walters failed to transfer withheld funds destined for the retirement plan and instead diverted the funds for other purposes, including his own personal use.
The damage done from stealing the money, funds, securities, premiums, properties and other assets of the employee pension plan resulted in a total loss of $72,817.27.
EBSA explains
“Prosecuting those who misuse funds from employee benefit plans is a vital aspect of this agency’s mission to protect the rights of America’s workers,” Jim Purcell, Employee Benefits Security Administration (EBSA) Regional Director in Kansas City, said in a statement. “EBSA will continue to aggressively investigate such crimes on behalf of workers nationwide.”
“Steven Walters embezzled employee contributions and loan repayments from the Synergy Concepts Retirement Plan for his own personal use. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Employee Benefits Security Administration to protect the integrity of employee benefit plans,” added Irene Lindow, Special Agent-in-Charge, U.S. Department of Labor Office of Inspector General.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
