United Airlines Sues Adviser for Fraud in Pilot 401(k) Brokerage

United Airlines Inc. sued a Minnesota investment advisory company that it said ran a fraudulent scheme to obtain loans from pilots’ retirement accounts through a plan brokerage window.

United says Keep Safe Investments LLC and its owner entered into contracts with United pilots to provide investment advice in connection with their retirement brokerage accounts, which allow them to invest in funds outside the plan’s investment menu. According to United, some of these contracts included excessive investment management fees that were actually used to fund loans to a company connected to Keep Safe.

Keep Safe obtained more than $1.5 million from ...