Benefits & Executive Compensation News

401(k) Plan Paid Out $124,000 Based on Fake Signature, Suit Says

Jan. 12, 2021, 8:22 PM

The founder of a Wisconsin highway data collection company on Tuesday filed a federal lawsuit against American Trust Co., accusing the retirement plan provider of distributing $124,000 from his 401(k) account to an unauthorized third party based on a form that appeared to be signed with Adobe Acrobat’s default signature feature.

Raymond Mandli and his company, Mandli Communications Inc., claim American Trust breached its fiduciary duties under the Employee Retirement Income Security Act when it approved an unauthorized request for a distribution from Mandli’s 401(k) account. American Trust, which allegedly acted as an ERISA fiduciary through its role as the...

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