LA Times: 401(k) Plans Have Scant Protection from Theft

December 10th, 2006 | by Molly's Brother |

In today’s Los Angeles Times, an article appeared by staff writer Kathy M. Kristof profiling some individuals who worked for smaller companies. Unbeknownst to them, their bosses embezzled money from their 401(k) plans, leaving them vulnerable as they head for retirement. (You can read the article here: So you think your 401(k) money is safe.)

“Workers often have no idea their savings are being stolen until it is too late, said Mary Browning, director of the Upper Midwest Pension Rights Project. In many cases, she said, the employers raid workers’ savings in an attempt to rescue their businesses.”

It’s a fascinating article that underscores the importance of being on top of your financial future at all times–especially when your employer is being cagey about specific issues. Hopefully, this article will help inform someone out there who might be experiencing the same issues right now.

(By the way, it’s been so long, I can’t remember if you have to register for the LA Times. If you do, it is free, but I can’t say it’s painless since I detest online registration forms.)

  1. 2 Responses to “LA Times: 401(k) Plans Have Scant Protection from Theft”

  2. By S/100/30 on Dec 11, 2006 | Reply

    It’s shocking how little protection there is for any type of financial theft. My dad prosecutes white collar crime, and is always telling heartbreaking stories about things like people losing their homes because the company they took out a “second” mortgage with never paid off the first mortgage.

  3. By Molly's Brother on Dec 11, 2006 | Reply

    I read articles like this and my heart always goes out to these people who think that they’re doing everything right in life. Not taking too blind financial risks, providing for their family, putting a good amount away each month for retirement and then it all gets pulled out from under them.

    I get overwhelmed when I think about how proactive one needs to be with their financial future.

    I am sure your dad has stories galore.

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