Legal Question in Investment Law in California

miss use of IRA funds by my company

Hi, i have a simple IRA account and i have found out, that my company has kept withdrawing money from my pay check and not depositing it to my IRA for over a year and half.In addition they were not matching my withdraws as promised either.All done without any of my knowledge. After i question this, they gave me a plan in which they promised to re-pay everything by march 2006.They have done it for about 20 people in my company as well.

My question is how legal are their action and what are my rights in this matter. Thank you --name removed--


Asked on 12/01/05, 1:14 pm

2 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: miss use of IRA funds by my company

Sounds like breach of contract for sure, and probably also fraud, breach of trust and breach of fiduciary duty. Those would be civil lawsuit causes of action.

Depending upon some additional facts, there may be chargeable crimes here, in the theft, fraud and embezzlement spectrum, but of course charging a crime (or not) is the DA's prerogative.

Whether or not you should pursue this aggressively may depend upon how you view (and value) your relationship with this employer, its general financial strength, its willingness and ability to reimburse everyone, whether the fault lies with the owners or subordinates, and other such factors.

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Answered on 12/01/05, 1:59 pm
H.M. Torrey The Law Offices of H.M. Torrey

Re: miss use of IRA funds by my company

In a nutshell, you have standing sue for breach of contract or tortious fraud. If you would like further assistance in this matter, contact us directly before you may inadvertantly prejudice some of your rights herein.

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Answered on 12/01/05, 3:32 pm


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