Benefits September 18, 2006

Suit Claims Plan Administrator Stole $7M of Retirement Assets

September 18, 2006 (PLANSPONSOR.com) - The CEO of a Tennessee corporate benefits administrator has been accused of stealing $7 million in retirement plan assets from Beck/Arnley Worldparts Corp., an auto parts company.
Reported by

class=”bodytext”> According to The Tennesseean, Barry Stokes, CEO of 1Point Solutions, is the focus of a federal lawsuit filed in Nashville, Tennessee last week. The lawsuit claims that Stokes failed to transfer plan assets out of an AIG Spelman & Co.nonbrokerage account by September 1.

class=”bodytext”> A week after the deadline had passed, Stokes was informed by his attorney that the plan’s money was “gone and likely unrecoverable,” the lawsuit said and the paper reported.

class=”bodytext”> The lawsuit by Beck/Arnley is its second action into 1Point’s handling of its plan. According to The Tennesseean, an earlier investigation discovered that benefits administrator had deposited the plan assets into the AIG Spelman account – triggering Beck/Amley’s demand that the funds get transferred.

class=”bodytext”> The lawsuit said the investigation into 1Point was sparked by plan participant complaints that their investment returns were not as high as the returns of family members who made similar investments.

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