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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.
Reported by
Rebecca Moore
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.
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.