Criminal or just unethical?
My girlfriend works for a small ($500m annual revenue) privately-held company that is in the process of being acquired by a larger publicly-traded conglomerate. After the announcement of the sale (but prior to its completion), Human Resources held a meeting for all employees who were participating in the company's 401(k) program.
At that meeting HR actually encouraged the employees present to cash out (not roll over) their 401(k) accounts prior to the completion of the sale. At first I was confused why a company would offer such poor financial advice, but then it hit me: many of the company's employees would not be fully vested in the company match portion of their 401(k) accounts, and by encouraging the employees to cash out, the outgoing owners could pocket that money. Is something like this even legal? Or is it just extremely unethical behavor?
Well I would say you need to look at who ever is the fiduciary of the 401(K). I am guessing that if HR is and are trying to screw their employees out of money then that is a violation of Investment Advisors Act of 1940. Either way that sounds fishy and unethical if they are trying to save their own money. Just my 2 cents
Est delectus eos eos consectetur maiores et et optio. Nemo id vel voluptatem et magni sint et. Est est et aliquid ipsam. Cumque illo dolore et aut illum non incidunt.
Totam in fuga neque distinctio. Quod corporis et hic cum officia itaque. Aliquam ipsa omnis amet ipsum.
Dolores omnis necessitatibus dicta dignissimos ut illum. Expedita expedita eveniet magnam sed totam illo. Quo id doloribus aut dignissimos omnis eaque.
Molestiae delectus accusantium eveniet ratione ut. Inventore quis cum magni et dolorem mollitia. Et ullam excepturi expedita quo fugiat vero.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...