Workers Say 401(k) Money Being Used By Company

May 15, 2003 ( - A former employee of the Kamber Group is alleging his termination was in retaliation for questions he asked about where his 401(k) contributions were going.

The civil suit in US District Court in Washington, DC centers on the 401(k) contributions being withdrawn from George Scott’s paycheck and why the company did not place them into his account until shortly before he was terminated, according to a report.

Scott’s lawyer filed suit in March alleging financial troubles spurred Kamber to “willfully and wrongfully” divert Scott’s pension fund distributions for its own uses, creating a “gross breach of fiduciary obligation and public trust.”   This action constituted a breach of ERISA provisions, the suit says.

Kamber claims Scott’s performance was not up to snuff and both side agree the company Kamber did eventually contribute money to Scott’s retirement fund around the time he was let go.   However, Scott’s suit claims Kamber put that money in “to cover its tracks,” and that he was abruptly fired with no explanation.

Kamber’s response to the allegations, filed April 25, denies that Scott performed his tasks “dutifully, adequately or, in some cases, at all.” The response goes on to claim Scott was fired September 30, instead of October 1 as Scott had said, “for performance problems well-known to [the] plaintiff well before this date.”