Compliance

GA Judge Sentences Ex-Insurance Executive for 401(k) Theft

By Fred Schneyer editors@plansponsor.com | November 12, 2009

November 12, 2009 (PLANSPONSOR.com) – A Georgia state court has sentenced the owner of the Hoyla Insurance Group to a five-year jail term and 15 years of probation, after his guilty plea to 19 counts of theft, including taking $65,000 from the company’s 401(k) plan.

Hoyla pleaded guilty to diverting for his own personal use employee contributions owed to the company’s 401(k) plan between 2002 and 2006. 

“Theft of employee benefit assets jeopardizes the benefits of workers,” said R.C. Marshall, director of EBSA’s Atlanta Regional Office, in the news release.

The insurance agency ceased operations on Sept. 6, 2006, after the Georgia Department of Insurance issued a cease and desist order.  The 401(k) plan covered seven participants and had $131,848 in assets as of April 5, 2007, the latest data available.