Rogue Plan Administrator to Get 14 Years Under Plea Deal

August 26, 2008 (PLANSPONSOR.com) - The former CEO of Tennessee corporate benefits administrator 1Point Solutions has reached a plea agreement with federal prosecutors that would put him in prison for a minimum of 14 years.

The Tennessean reports that, according to a letter to victims dated Monday from U.S. Attorney Ed Yarbrough’s office in Nashville, under the terms of the agreement, Barry Stokes would plead guilty to 29 counts of embezzlement of retirement funds, in addition to several counts of wire fraud, mail fraud, money laundering, and criminal contempt. A federal grand jury in Nashville last May returned a 78-count superseding indictment against Stokes for his role in stealing money from the plans administered by the company (See 1Point CEO Slapped with 78-count Indictment).

In addition, the letter said Stokes would admit to embezzling more than $16 million in retirement funds from more than 1,000 participants, would give up his rights to about 200 pieces of art, and agree to pay restitution of about $20 million, although the exact amount would be determined at sentencing, according to the news report.

Stokes’ victims can comment on the proposal on the U.S. Attorney’s Web site at www.usdoj.gov/usao/tnm by sending an email to the office. Those impacted by the case also will have an opportunity to give victim impact statements to the court before the sentencing, the news report said.

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