Campbell is accused of embezzling nearly $2.5 million from funds intended for employee health insurance and 401(k) contributions. According to federal prosecutors, he made 135 unauthorized withdrawals from a master trust account between 2015 and 2024, using the money for personal luxuries like big game hunting trips, jewelry, and casino gambling. He now faces up to 10 years per count of money laundering and 5 years for theft from an ERISA plan.
Let me be clear: this is an extreme case, but it’s not an isolated one. The Department of Labor and the Employee Benefits Security Administration (EBSA) are increasingly aggressive in investigating fiduciary breaches. And with recent lawsuits and Supreme Court rulings lowering the bar for plaintiffs to bring claims, executives are under more scrutiny than ever.
What You Need to Know
Under ERISA, fiduciaries must:
- Act solely in the interest of plan participants.
- Avoid conflicts of interest.
- Ensure fees are reasonable and investments are prudent.
Even well-intentioned errors like failing to forward contributions on time or misallocating fees can trigger investigations. And if you’re found to have misused plan assets, the penalties are severe.
Recent Trends to Watch
- Dismissal standards are tightening: Courts are increasingly allowing ERISA mismanagement cases to proceed, even when evidence is thin.
- Settlements are skyrocketing: Annual ERISA related settlements now routinely exceed $400 million, with plan sponsors facing unprecedented legal scrutiny.
- Webinars and training are booming: Industry leaders are urging executives to attend compliance webinars and refresh their understanding of fiduciary duties.
How to Protect Yourself
- Review your plan’s operations regularly with legal counsel.
- Document all decisions related to plan administration.
- Avoid pooling funds unless explicitly permitted and properly disclosed.
- Ensure transparency with participants and regulators.
- Report concerns early silence can be construed as complicity.
If you suspect any irregularities in your company’s retirement plan administration, consult legal counsel immediately. The cost of inaction could be your freedom.