CA Education Officials Sue TPA Over Diverted Retirement Plan Contributions

December 6, 2005 ( - California state officials have filed a lawsuit against a third-party administrator alleging the firm diverted $2.2 million sent it by the state Department of Education for teacher and other employee retirement plans.

The lawsuit filed in California said the company and its president Francis Reimers improperly took   the money sent to the company after it was deducted from employee paychecks, according to an Associated Press report.

According to the news report, the lawsuit stems from a criminal investigation by the attorney general and the FBI.

State officials said previously that the investigation also included $420,000 Plan Compliance failed to deposit for University of Hawaii employees. That accusation, however, wasn’t included in the lawsuit.