News Flash: Employer Jailed Following Investigation Of Pension Plan

Russell Crawford, the former owner of Valley Building Materials in Canoga Park, was ordered to spend six months in jail plus 10 months of home confinement for embezzling more than $700,000 from employee pension plans. Following a joint investigation by the U.S. Department of Labor and the FBI, Crawford reportedly admitted draining the company’s profit sharing plan and defined benefit plan. To help thwart employer embezzlement, the federal Pension and Welfare Benefits Administration has proposed new regulations for safeguarding small-business pension plans.