Legal Question in Employment Law in District of Columbia

401K pension

I work with a few people who had a portion of their pay deducted for their 401K. The money was deducted but was not added to their 401K. Eventually, all of my co-workers stopped contributing to their 401K because their statements never reflected a change. Each of my co-workers have asked our boss what happened to the money deducted. After a year an answer has yet to be given. Just recently, at least 2 of my co-workers received their 401K statement. The statements reflect that all of their money had been removed from their 401K accounts. My co-workers called the company managing the account and were told to check with the new account manager (our boss was named). All of the money in the account had been contributed by the employees- there was no corporate matching. What should my co-workers do?


Asked on 9/10/02, 10:19 pm

1 Answer from Attorneys
Lawrence Holzman Holzman Law Firm, LLC

Re: 401K pension

The circumstances described implicate serious violations of law, including common law and statutory fraud, conversion, State and Federal Wage and Hour laws, ERISA violations, etc. Additionally, there are common law breach of contract and related actions that may be involved.

You and/or your colleagues should immediately contact legal counsel. Under some circumstances like this, it may make sense to act as a group rather than as individuals.

I practice in this area and would be happy to chat with you or with any of your colleagues to determine your appropriate next steps.

Lawrence R. Holzman, Esquire

Joseph, Greenwald & Laake, P.A.

6404 Ivy Lane, Suite 400

Greenbelt, MD 20770

(301) 220-2200

fax (301) 220-1214

Disclaimer: Please note that the posting of this response is not intended to constitute legal advice. You should contact an attorney to obtain information applicable to your situation. This posting is not confidential or privileged and does not create an attorney/client relationship.

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Answered on 9/11/02, 10:24 am


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