The U.S. Labor Department has filed suit against Parnell & Co. LLC, alleging that the South Carolina accounting firm helped itself to at least $75,000 from the employee 401(k) plan.

The lawsuit was filed against the Greenville, S.C.-based firm and its owner Christopher Parnell, according to the Associated Press. The suit seeks to recover over $75,000 in lost earnings and assets.

The owner was allegedly part of an investment group that received money from the 401(k) plan along with at least $120,000 from real estate transactions, according to the Greenville News, but the 401(k) never received any money from those investments.

Parnell also allegedly made several withdrawals from the 401(k) amounting to $6,000 for “non-plan purposes and obligations.” There is no longer enough money left in the 401(k) plan to make the required distributions to the plan participants.

The Labor Department wants a judge to order Parnell to repay the funds and ban him from controlling any further retirement plans. Parnell and his firm could not be reached for comment.


Cohn writes for Accounting Today, a SourceMedia publication.Follow EBN on: Twitter | Facebook | LinkedIn | Podcasts

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