Benefits administrators plead guilty to $15 million embezzlement

Benefits administrators plead guilty to $15 million embezzlement
The Texas couple made 90 unauthorized distributions from pension and retirement plans they ran
JUN 19, 2020

A Red Oak, Texas, couple pleaded guilty to embezzling $15 million from 13 of the pension plans and seven of the retirement plans they administered.

Vantage Benefits Administrators co-owner Wendy Richie, 59, pleaded guilty to two counts of theft from an employee benefit plan and one count of aggravated identity theft. Her husband, Vantage co-owner Jeffrey Richie, 55, pleaded guilty to two counts of aiding and abetting theft from an employee benefit plan. Their company served as third-party administrator for dozens of pension and retirement funds.

According to plea papers, Ms. Richie admitted to using fund beneficiaries’ personal information to submit $15.2 million in fraudulent distribution requests to Matrix Trust, the funds’ custodian from 2014 and 2017. Instead of depositing the money into beneficiaries’ accounts, she transferred it into Vantage’s operating account, then into personal bank accounts.

At least $6.2 million of the $15.2 million Ms. Richie embezzled was taken with Mr. Richie’s knowledge, he admitted. In total, the pair admitted to submitting more than 90 unauthorized distribution requests.

Ms. Richie faces up to 12 years in federal prison; Mr. Richie up to 10 years. They may be required to pay restitution as well as a $500,000 fine.

Latest News

Trump announces auto tariffs with 'no exceptions' and markets got spooked
Trump announces auto tariffs with 'no exceptions' and markets got spooked

Expectation of the Fed staying on hold for longer is also rising.

How much do American teens really know about money?
How much do American teens really know about money?

Spoiler Alert: Not as much as they need to, report reveals.

BlackRock's Boivin expects US stocks performance rebound
BlackRock's Boivin expects US stocks performance rebound

Investment Institute head says European stocks gains will be short-lived.

Robinhood to offer private bank, enhanced wealth management
Robinhood to offer private bank, enhanced wealth management

Trading app to add new services in collab with banking partner.

Hedge funds buy the dip in cyclical funds
Hedge funds buy the dip in cyclical funds

Banks, energy companies among investors' targets.

SPONSORED Retirement plan balances are flourishing. Why are so many advisors missing out on a $3 trillion opportunity?

Participants who receive professional 401(k) advice see higher returns on average, net, than those who don't.

SPONSORED Focus on clients, not compliance – why Gary Corderman found his fit with Farther

This wealth management platform finally delivers on the technology promises other firms couldn't - giving advisors a better way to scale and serve