|
 Printer-Friendly Version
Archived News Release--Caution:
information may be out of date.
For more information call: (202) 219-8211
Secretary of Labor Alexis M. Herman and Attorney General
Janet Reno today announced a successful multi-agency enforcement initiative to
crack down on "white collar" crimes targeted at the $3.5 trillion in assets
held by the nation's private-sector pension plans. During the initiative, there
have been 70 cases involving more than 150,000 participants against pension
defendants, including 21 cases within the past two weeks.
"Most pension plans are well-managed and financially
safe," said Herman. "A few unscrupulous persons, however, still see these plans
as ripe targets to siphon off the hard-earned retirement money of American
workers."
"This initiative will strengthen the Labor Department's
ability to protect pension plan assets from criminal abuse, self-dealing and
mismanagement," Herman said.
The project is a multi-agency federal effort to ensure
that the retirement benefits of Americans remain safe and secure. Agencies
participating in the initiative include the Labor Department's Pension and
Welfare Benefits Administration (PWBA) and Office of Inspector General, the
Federal Bureau of Investigations, Internal Revenue Service and Securities and
Exchange Commission.
"As Americans grow more dependent on retirement income
from pensions, it is important that they feel confident that their investments
remain safe and secure," said Reno. "This initiative will bolster that
confidence."
These criminal actions include charges brought,
convictions obtained or sentences imposed. Most of the cases involve owners and
officials of small and mid-sized companies who embezzled pension assets for
their personal use or corporate enrichment. The Labor Department was involved
in a majority of these cases.
"We will continue our nationwide crackdown on pension
abuse until we are sure that all American workers' retirement money is safe,"
said Olena Berg, assistant secretary of labor for pensions and welfare.
"It is most important to remember the victims," said
Charles Masten, the department's inspector general. "These are the people who
work their entire lives making contributions to their pension plans with the
understanding that they will have a source of income when they retire."
Under federal pension law, the Labor Department has
primary enforcement authority over 700,000 private pension plans. Both civil
and criminal investigations are conducted by PWBA into a wide range of improper
actions involving plans. In Fiscal Year 1996 alone, PWBA's enforcement program
recovered more than $322 million for pension plans, workers and their
families.
As part of its broader pension enforcement program, the
department has been targeting investigations into misuse of employee
contributions to 401(k) plans. In March, President Clinton announced the
success of this project, which has returned $24 million to more than 40,000
workers nationwide.
Archived News Release--Caution:
information may be out of date.
| 
