Compliance September 13, 2010

Spa Owner Charged with Retirement Fund Embezzlement

The owner of a Pasadena, California, spa and salon has been charged with embezzling more than $26,000 withheld from employee paychecks for a 401(k) profit-sharing plan.
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A news release from the U. S. Department of Labor’s Employee Benefits Security Administration (EBSA) said Joseph Wong of Rowland Heights, president and owner of Pasadena based Amadeus Salon Inc., was indicted by a grand jury.  According to the indictment, Wong withheld the funds between 2004 and 2008, but allegedly used the money for his own benefit. 

The eight-count indictment alleges that Wong embezzled from an employee benefit plan covered under the Employee Retirement Income Security Act (ERISA).  Each count in the indictment carries a maximum statutory penalty of five years in federal prison.

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At his Los Angeles arraignment, Wong pleaded not guilty to the charges and was released on a $50,000 bond, according to the news release.  Wong’s trial is scheduled to begin on October 19 in U.S. District Court. 

 

Deals & People September 13, 2010

Great-West Turns to Morrison in Sales Director Role

 

Great-West Retirement Services has promoted Dan Morrison, a 10-plus year sales and service veteran, as regional director of national accounts for its Rocky Mountain market.

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In this newly created position, Morrison, based in the firm’s Greenwood Village, Colorado, headquarters, is responsible for sales of retirement plans with assets greater than $25 million to sponsors of 401(k), 401(a), 403(b) and non-governmental 457 retirement plans in Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, New Mexico, North and South Dakota, and Wyoming. Morrison will report to Pete Margiotta, national sales director.

According to a press release, Morrison joined Great-West Retirement Services in 2004 as a client relationship manager for its 401(k) market. He was promoted in 2006 to regional director of client relations for the Mountain Region, and a little more than a year after that, he was promoted again to regional managing director for the western United States.

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Prior to joining Great-West Retirement Services, he spent four years at Merrill Lynch in a variety of positions within its retirement business.

He earned bachelor’s degrees in mathematics and English from the University of Vermont.

 

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