Legal Question in Business Law in Illinois

401k

My husband joined his company's 401K retirement plan and they began taking out his percentage in the beginning of July. I called to see how much was collected in this account and the investment company had no record of this account. I spoke to someone at my husbands place of employment and she said they were waiting for a line of credit from the bank before they could send the money in. It sounds more like the company has financial problems and is using the money for other purposes. I don't know if other money collected from those who have already joined is being put into the 401K but the market has been going up in the last three months and we are not in it. My husband did request his money back since it is not being invested and the office secretary said she couldn't give it back even though it has not gone into the 401K yet. Does this sound like proper procedure or is something going on?

Thanks for any advice.


Asked on 10/15/03, 12:14 pm

2 Answers from Attorneys
Kenneth J. Ashman Ashman Law Offices, LLC

Re: 401k

Sounds like something seriously fishy, including fraud and/or securities fraud. Also sounds like you have a potential class action here, depending on the number of employees affected.

I'd be interested in more details.

-- Kenneth J. Ashman; www.AshmanLawOffices.com; [email protected]

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Answered on 10/18/03, 11:11 pm
Spencer Farris The S.E. Farris Law Firm

Re: 401k

This is a regulated area, and calls to the state attorney general and the labor commission are steps in the right direction. Better to do that before making waves at the company- if all is well and proper, it will doubtless create problems at work. If not, an prompt inquiry with the state should get it resolved.

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Answered on 10/15/03, 12:25 pm


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