Plan Administrator Indicted for Filing False Annual Reports with the U.S. Department of Labor

Archived News Release — Caution: Information may be out of date.

Philadelphia, Pennsylvania - A federal grand jury indicted the owner of VPC Group Inc. of Virginia Beach, Virginia, on five counts of filing false and fraudulent annual reports with the U.S. Department of Labor on behalf of 401(k) plan clients covered by the Employee Retirement Income Security Act (ERISA).

“Employers, especially small employers, depend on plan administrators to file timely and accurate financial reports with the federal government,” said Ann L. Combs, assistant secretary of the Labor Department’s Employee Benefits Security Administration (EBSA). “This indictment shows our commitment to vigorously pursue reporting violations to ensure that we receive information needed to enforce employee benefit laws.”

Gary Lee Beavers was charged with preparing and filing false and fraudulent annual report Form 5500s for the Equipment Depot Inc. Employees Salary Reduction Plan & Trust for plan years 2000 through 2003, and the Glass Baron Inc. 401(k) Profit Sharing Plan for plan year 2001. The Form 5500 is a report that is required by ERISA to be filed annually with the department.

The indictment alleges that Beavers caused the plans to falsely report that financial statements and schedules were audited and received an opinion as to accuracy by an independent qualified public accountant, as required by ERISA. He also allegedly used the name of a specific certified public accountant for this purpose, knowing that the accountant had performed no audits and had prepared no accountant's opinions. The certified public accountant was unaware that his name had been used in this manner. If convicted, Beavers faces a maximum of 25 years in prison.

Gordon S. Heddell, inspector general of the Labor Department, said, “Hard-working Americans deserve to have their retirement funds properly administered. Those who breach that trust will be held fully accountable for their criminal acts. My office is committed to working closely with the department and other law enforcement agencies to detect and deter ERISA violations.”

The case resulted from an investigation by the EBSA’s Washington District Office and the Labor Department’s Office of Inspector General. The case is being prosecuted by the U. S. Attorney's Office for the Eastern District of Virginia.

(U. S. v. Beavers)
Criminal No. 2:05cr152

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Archived News Release — Caution: Information may be out of date.