Kansas Business Exec Gets 50 Months, $4.3M Fine for 401(k) Theft

A Kansas business owner was sentenced to 50 months of imprisonment, followed by five years of supervised release, and a $4.3 million fine for bank fraud and embezzling money from her employees’ 401(k) plan.

Brenda Wood, who owned Professional Cleaning and Innovative Building Services Inc. and four other businesses in Kansas, embezzled approximately $31,403 in employee contributions. Wood made false statements to Farmers Bank & Trust of Great Bend to secure a $350,000 line of credit extension.

A federal judge in Kansas Aug. 6 ordered Wood to pay $69,000 in restitution for the employee contributions she diverted, and approximately $4.3 ...