Media Release

Release Date:12/15/1998
Release Number: OPA KC-PWBA-13
Contact Name: Norma J. Conrad
Phone Number: 816.426.5491
Contact Name:Patrick A. Hand
Phone Number: 816.426.5490
Contact Name: Sharon Morrissey
Phone Number: Phone Number: 202.219.8921

Overland Park Businessman Pleads Guilty To 401(K) Plan Embezzlement

The former owner of an Overland Park, Kan. company pleaded guilty to a one-count information charging him with embezzling assets from his company’s 401(k) plan. According to the guilty plea filed Dec.11, Allen Sander, acting as sole trustee of the Shamrock Services Company Employees’ Saving Plan, a 401(k) defined contribution plan, allegedly embezzled plan assets, including employee contributions between July 1991 and January 1996. The plan covered 15 employees.

As a result of this week’s guilty plea, Sanders faces a maximum penalty of five years in prison, restitution and a fine of $250,000 or twice the amount of the loss, whichever is greater. Sentencing is scheduled for March 1, 1999 before U.S. District Court Judge Kathryn H. Vratil. Note, however, that the Court, guided by the U.S. Sentencing Guidelines, will determined the sentence to be imposed. The criminal case was prosecuted by Assistant United States Attorney Brent Anderson.

This case is part of a national enforcement initiative by the U.S. Department of Labor’s Pension and Welfare Benefits Administration (PWBA) to prevent employers from diverting employee contributions for personal or company gain. The guilty plea followed an investigation by PWBA’s Kansas City Regional Office.

(U.S. v. Sander)
Criminal Action CR 98-20073-EEO
The Civil Action Case (Herman v. Sander et al.) - CIV 9802009-JHL

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