401(k) Fraud Lawyers
401(k) plans are the most common employer retirement plan among American workers. According to the Investment Company Institute, assets in 401(k) retirement plans surpassed $4.4 trillion. However, if a 401(k) is mismanaged or misused by your employers, your hard-earned money can disappear, leaving you without a backup plan when you retire.
If you feel that your employer or investment company is mismanaging your retirement account, you should speak with an experienced 401(k) mismanagement lawyer to help you recover your losses. For years, the 401(k) fraud lawyers at Sanford Heisler Sharp have been helping victims regain money lost by fraudulent activity.
What is Considered 401(k) Mismanagement?
Your employer sets up and maintains your 401(k) plan. It is your company’s responsibility to determine requirements and details of the plan. For example, your employer may decide whether a matching contribution by the company will be made. Employers are also responsible for choosing the plan’s vendor and partly responsible in how the fees will be charged to the plan. However, if your employer neglects to maintain and monitor your 401(k) program, a substandard retirement plan for the workers could result. This can be considered 401(k) mismanagement.
According to the Employee Retirement Income Security Act of 1974 (“ERISA”), there are minimum standards for most voluntarily established pension and health plans in the private sector to provide protection for workers who utilize these plans. An employee can file a claim against an employer for violating ERISA rights because of the following conditions:
- The employer offered poor performing investment options;
- The employer offered investment products with high fees when a cheaper option was available; or
- The employer did not use the size of the plan to negotiate a lower fee with third-party vendors.
Our 401(k) Mismanagement Lawyers Hold Employers Accountable
The financial services litigation lawyers at Sanford Heisler Sharp are dedicated to holding employers accountable and protecting employees against retirement plan mismanagement and inappropriately high fees. We welcome inquiries from participants who wish to investigate whether their 401(k) investment options:
- are limited to proprietary mutual funds managed by their employer or sister company,
- have a history of poor investment performance,
- charge high fees when cheaper investment options were available, or
- include investment products that paid rebates to or shared revenue with the employer.
If you believe your 401(k) has been mismanaged, contact our 401(k) mismanagement lawyers for an evaluation of your case.