Wells Fargo 401k Plans Robbed-Thousands $ Missing

Wells Fargo 401(k) Operations Manager Accused of Robbing 401k Customers Accounts

According to the Web site for KSTP-TV Eyewitness News, a Wells Fargo 401(k) retirement operations manager, has been accused of robbing 401k customer accounts.

The Operations Manager, overseeing the 401k daily fund operations, allegedly disbursed money from dormant 401k accounts and deposited it into his own separate account.

HOW THE 401K ACCOUNTS WERE ROBBED

Point-by-point, this retirement manager eluded what should have been Well s Fargo s own financial controls

• Requested false name changes on dormant accounts,


• Provided false Social Security numbers for the false names, then


• Requested the disbursements from the accounts and


• Reset the account information back to the original owners.

Where were the procedural controls? At each step in this alleged theft, there should have been procedural controls to prevent someone from taking these actions without either an independent review and / or supervisory authorization.

When a 401k plan s administration and assets are at the same organization, the risk of insiders bypassing their own procedural controls is always present.

FIVE ACTIONS TO PROTECT YOUR 401K NOW

You put your 401k funds into the hands of those who seem trust worthy. Whether it is greed or other financial need that results in their dereliction of duty, the abandonment of their obligations and responsibilities, you need to protect yourself and your plan s assets.

Here is what you should do now--

First:
Check with your plan administrator or record keeper to determine whether they are also holding your assets.

Second:
Request a SAS -70 or similar report of the procedural and financial controls on your 401k assets.

Third:
Require that all Plan information changes and plan distributions be authorized by a Plan Representative or Trustee.

Fourth:
Require an accounting of all disbursements from the plan and a report of all data changes of the plan on a quarterly basis.

Fifth- Last Resort:
Transfer your plan to an organization that can meet your financial and procedural control requirements.

By implementing the five actions now you can go back to sleeping peacefully again..