An Awful Example of 401k Fraud: Ohio Business Executive Convicted for Embezzlement, Failure to Pay Over Taxes
C. David Snyder, the former chief executive officer, president, and chairman of Attevo, Inc. was recently convicted on five counts of failure to pay over taxes and one count of embezzling from an employee pension fund.
According to the United States Attorney’s Office for the Northern District of Ohio, Snyder collected almost $860,000 from employees that he did not pay to the IRS, and embezzled $126,000 from an employee retirement fund.
According to the U.S. Attorney’s Office, employees at Attevo prepared financial reports, quarterly and annual returns, records, and schedules at Snyder’s direction. On behalf of the technology consulting company based out of Cleveland, OH, Snyder agreed to a $48,350 monthly payment plan with the IRS. According to court documents, he only made 10 payments before stopping.
Snyder reportedly withheld his employees’ payroll tax, but did not pay it to the IRS. He reportedly failed to pay an estimated $328,355 in these taxes in 2010, and an estimated $530,778 in 2012. He also reportedly created a profit-sharing and 401k plan for his employees in 2009, which was funded by employee payroll deferrals. Snyder reportedly failed to pay an estimated $126,000 in loan repayments and contributions into the plan from 2010 to 2012 – instead, he reportedly spent $20,000 per month on four vehicle leases, renting his vacation home and a personal residence, and other personal expenses.
“Charles Snyder embezzled retirement savings from his employees’ 401k accounts, and used the money for his personal benefit,” said James Vanderberg, Special Agent-in-Charge, Chicago Region of the U. S. Department of Labor Office of Inspector General. “We will continue to work with our law enforcement and other partners to protect retirement assets covered by the Employee Retirement Income Security Act.”
Our investment fraud attorneys at Meyer Wilson have considerable experience working with victims of fraud, including cases involving 401k accounts. If you lost money due to the fraudulent actions of your employer or broker, give us a call at (888) 390-6491 to discuss your situation with a member of our firm over the phone, or send us the details of your case through our online form to schedule a free case evaluation today.