Employee Embezzlement

[Guest Jack19]

We have a situation in which an employee embezzled funds from the employer, and now, as part of the plea agreement, wants to pay back the employer with funds from the employee’s profits sharing plan. I know ERISA generally forbids assignment, but there is an exception in the reg (26 C.F.R. § 1.401(a)13). Has anyone ever dealt with this situation before??—is following the procedure in subsection (e) of the regulation all that needs to be done? Does anyone know of a case discussing this situation? Any help would be appreciated—thanks.

[david rigby]

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embezzle, embezzlement, fraud.