November 10th, 2011
Econintersect: In 2009 investment advisor Matthew Hutcheson testified before Congress about the need for 401(k) advisors to be held to high fiduciary standards. (Picture shows Hutcheson testifying.) Hutcheson is now being investigated for possible violation of fiduciary responsibility. The complaint has been filed with the U.S. dept. of labor by Rodney Thompson, co-owner of Thompson Audiology in Yakima, Washington. A DOL spokesman has said the agency is investigating Hutcheson. Follow up:
Follow up:From Financial Advisor:
Thompson and his employees had more than $1 million invested in a 401(k) plan called the G Fiduciary Retirement Income Security Plan, and Hutcheson was the fiduciary -- the person minding the assets. The money was supposed to be transferred in June to a new plan that Hutcheson ran.
The funds never arrived and Hutcheson told him they were in an investment that he couldn’t sell immediately, Thompson said. Thompson said he pressed Hutcheson for weeks, to no avail. In August, he filed a complaint with the U.S. Department of Labor, which regulates 401(k)s.
Financial Advisor has quotes from two of Hutcheson’s clients:
- “This is money that our employees are counting on,” Thompson said in an interview. “He preached transparency, and he’s not being transparent at all.”
- David Novak, a dentist in North Carolina, said his practice is missing $275,000 that it had in the G Fiduciary plan. “If his lips are moving, he’s lying to you,” Novak said in an interview. “If he had a gun, it would be robbery.”
Financial Advisor describes extensive resort property ventures started in the past few years, but does not specifically tie any of the missing money to those ventures. However, the article does detail some problems Hutcheson has had with cashing bad checks and liens filed by construction contractors.
A statement has been made by on behalf of Hutcheson. From Financial Advisor:
Through his attorney, Hutcheson denied any wrongdoing.
“All of the allegations are baseless,” said Dennis Charney, a lawyer in Eagle, Idaho. “We will address this in court at the right time but do not feel a newspaper is the forum to try pending and future lawsuits.”
Source: Financial Advisor