Benefits July 25, 2008

Bogus Hardship Withdrawals for Chrysler Workers Leads to Conviction

July 25, 2008 (PLANSPONSOR.com) - A woman accused of persuading auto workers to take bogus hardship withdrawals from their 401(k) accounts has been convicted, the Associated Press reported.
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Prosecutors accused Mary Kennedy Howard of filing hardship requests totaling about $600,000 for purchases of houses that did not exist. Howard took a 10% fee from the hardships.

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Howard filed 46 401(k) withdrawal requests from 1998 to 2002, mostly for people who worked at Chrysler LLC’s Warren Stamping Plant, the AP said.

According to prosecutors, the 64-year-old woman turned down an attractive plea deal before the trial. She was convicted of mail fraud on Wednesday.

Howard will be sentenced on October 30.

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