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So your probably sitting there with this Civil Investigative Demand from DOL or DOJ about pension fund violations and your entire retirement plan is under attack. Maybe there’s issues with participant loans. Maybe you had prohibited transactions. Or maybe your just caught up in there latest ERISA enforcement sweep. Look, we get it. Your ABSOLUTELY HORRIFIED. And you should be! Because embezzlement from employee benefit plans carries 5 YEARS in federal prison and recent cases show $20 MILLION forfeiture demands!
Let me explain the ERISA nightmare your facing. DOL’s EBSA and DOJ share enforcement authority and there coordinating to destroy “fiduciaries” who violate there impossibly complex rules!
The Employee Benefits Security Administration conducts CRIMINAL investigations under Program 52! These aren’t auditors – there federal investigators working with FBI! They have subpoena power, can freeze assets, and refer cases for criminal prosecution! We’ve seen plan sponsors imprisoned for accounting errors!
Here’s what’s really scary – DOJ prosecutes relatively small amounts – even tens of thousands triggers criminal charges! You don’t need to steal millions to face federal prison! One small business owner got 13 months for $50,000 in improper withdrawals!
Hold onto your 401(k) because these numbers will destroy your entire business!
Civil penalties under ERISA 502(i) for prohibited transactions start at 5% of amount involved! Don’t correct within 90 days? 100% PENALTY! Had a $500,000 prohibited transaction? That’s $500,000 penalty! Plus excise taxes! Plus restoration of losses!
Criminal penalties are DEVASTATING – embezzlement carries 5 years prison under 18 USC 664! Each withdrawal is separate count! False statements add 5 years! Conspiracy another 5 years! Newton Jones indicted with $20 MILLION forfeiture demand!
Fiduciary breaches trigger PERSONAL LIABILITY! ERISA 502(l) imposes 20% penalty on recovery amount!
You’re personally liable to restore ALL losses to the plan! Improper investment lost money? You pay it back PERSONALLY! Plus 20% penalty! Plus interest! Plus legal fees! We’ve seen executives lose there homes paying back pension losses!
The worst part – co-fiduciaries are jointly liable! Your business partner’s mistake? YOUR liable! Board member approved bad investment? Everyone pays! CFO made error? CEO goes to prison! One person’s violation destroys everyone!
Your probably wondering “How did they find out?” Let me tell you what puts plan sponsors in DOL’s crosshairs:
Participant complaints trigger most investigations! Employee didn’t get loan fast enough? They call DOL! Denied hardship withdrawal? DOL complaint! Former employee angry about vesting? INVESTIGATION!
Form 5500 audits flag discrepancies! Late deposits flagged automatically! Large employer stock holdings scrutinized! Plan loans to owners trigger reviews! Even switching recordkeepers can trigger investigation!
Prohibited transactions are EVERYWHERE in ERISA! Even legitimate business dealings become prohibited!
Loan to company owner? PROHIBITED! Lease office from plan sponsor? Prohibited! Use plan assets as collateral? PROHIBITED! Even paying yourself reasonable compensation can be prohibited transaction! We’ve seen businesses destroyed for transactions they thought were arms-length!
The penalties stack exponentially – 15% excise tax to IRS, 100% DOL penalty if not corrected, personal liability for losses, and potential criminal prosecution! One prohibited transaction can trigger millions in combined penalties!
ABSOLUTELY! And DOL aggressively refers cases! DOJ has dedicated unit for pension crimes!
Recent prosecutions are terrifying! Michael Neill got 13 months prison for embezzlement! Business owners imprisoned for late deposits! Plan administrators prosecuted for participant loans! These aren’t mobsters – there small business owners trying to manage plans!
The “willful” standard is shockingly low – you just need to know plan had assets! Didn’t know rules? Irrelevant! Thought it was temporary loan? Still guilty! Made restitution? Doesn’t matter! We’ve seen executives imprisoned even after paying everything back!
The scope is absolutely overwhelming! DOL demands EVERYTHING about plan operations:
Every plan document and amendment, all participant files and beneficiary designations, investment records and brokerage statements, service provider contracts and fee disclosures, board minutes mentioning the plan, payroll records showing contributions, even emails about plan administration!
For criminal investigations its worse – personal bank records of all fiduciaries, tax returns showing compensation, credit card statements, travel records, and phone records! How do you prove every deposit was timely over 10 years? You can’t!
Prepare for YEARS of regulatory torture! ERISA investigations are incredibly complex:
Initial CID response (60 days of massive production), DOL review and analysis (6-12 months), participant interviews and follow-up (6-12 months), coordination with IRS and criminal referral (6-12 months), settlement or prosecution (12-24 months)!
Your looking at 3-5 years MINIMUM! During this time, participants sue civilly, banks won’t lend with pending DOL action, employees lose confidence in plan, and insurance carriers cancel coverage! Legal fees? Expect $300,000 to $750,000! We’ve seen profitable companies bankrupted by investigation costs!
Late deposits are DOL’s FAVORITE violation! Even one day late triggers penalties!
Small plan rule says 7 business days – but DOL says deposits must be “as soon as practicable”! Could be 2-3 days! Miss by one day? Prohibited transaction! Lost earnings must be restored! Interest calculated! And potential criminal charges!
The trap is devastating – payroll on Friday, deposit Monday? Could be late! Holiday weekend? No excuse! Banking delay? YOUR fault! We’ve seen executives criminally prosecuted for deposits that were 3 days “late” due to bank processing!
VFCP is a TRAP for criminal cases! Voluntary correction doesn’t prevent criminal prosecution!
You admit violations in writing! Becomes evidence against you! Still face criminal charges! Only get civil penalty relief IF approved! We’ve seen companies go through VFCP only to be criminally prosecuted using there own admissions!
But not correcting violations when discovered? Breach of fiduciary duty! Continuing violation! Enhanced penalties! Your damned if you correct, damned if you don’t!
ERISA pierces ALL corporate protection! Fiduciaries are PERSONALLY liable!
LLC protection? Meaningless! Corporate shield? Pierced! Personal assets at risk! Home, retirement accounts, investments – all reachable! We’ve seen executives lose everything – house foreclosed, 401k drained, kids’ college funds seized!
Co-fiduciary liability means everyone pays! Innocent board member? Still liable! Relied on experts? No defense! Delegated to committee? YOUR STILL LIABLE! One person’s mistake destroys entire board!
Look, we’re not your typical ERISA lawyers who just review plan documents. We’re federal criminal defense attorneys who specialize in keeping fiduciaries out of federal prison when pension issues become criminal prosecutions!
We understand ERISA’s impossible complexity and how technical violations differ from criminal intent. We know late deposit rules and prohibited transaction exceptions. We can demonstrate good faith administration even with errors. Most importantly, we prevent civil investigations from becoming criminal cases!
Other firms tell you to cooperate with DOL and make corrections. That’s EXACTLY how plan sponsors end up in federal prison! The government doesn’t care about your good intentions – they want criminal convictions and asset forfeiture. We fight strategically, protecting your freedom and personal assets!
Call us RIGHT NOW at 212-300-5196
Pension investigations destroy businesses overnight!
Former DOL prosecutors – ERISA criminal defense experts – Available 24/7!
Don’t wait another second! DOL investigators are reviewing your Form 5500s! Participants are being interviewed! Criminal referral may already be made! Your personal assets are at risk! Every day of delay creates more violations!
Remember – pension violations aren’t just civil penalties anymore. Executives go to federal prison for administrative errors. One late deposit, one prohibited transaction, one fiduciary breach can trigger criminal prosecution and personal bankruptcy. You need someone who understands ERISA complexity AND federal criminal defense. Call us NOW before that CID becomes handcuffs!
Very diligent, organized associates; got my case dismissed. Hard working attorneys who can put up with your anxiousness. I was accused of robbing a gemstone dealer. Definitely A law group that lays out all possible options and best alternative routes. Recommended for sure.
- ROBIN, GUN CHARGES ROBIN
NJ CRIMINAL DEFENSE ATTORNEYS