Vantage Benefits Administrators co-owner Jeffery Richie, 55, and his wife (and co-owner) Wendy Richie, 59, have pled guilty to several counts in federal court for their role in a $15 million embezzlement scheme.
Jeffery Richie pled guilty to two counts of aiding and abetting theft from an employee benefit plan, while Wendy Richie pled guilty to two counts of theft from an employee benefit plan and one count of aggravated identity theft.
In November 2017, the Federal Bureau of Investigation raided the offices of Vantage Benefits Administrators “amid concerns that money may be missing from retirement accounts the company manages.” Founded in 1993, Vantage Benefits described itself as a full-service TPA specializing in corporate benefit programs, with a focus on small plans (under $10 million).
“This couple took advantage of innocent people who were working hard and saving for their future,” U.S. Attorney Nealy Cox said in October 2018 when the couple was charged. “We cannot permit such brazen financial misconduct to go unchecked.”
Citing plea papers, a press release from the United States Attorney’s Office for the Northern District of Texas says that Ms. Richie admitted to using fund beneficiaries’ personal information to submit $15.2 million in fraudulent distribution requests to Matrix Trust, the funds’ custodian (which, for a time, had been a party to litigation brought, and subsequently dropped, regarding its actions). However, rather than depositing those funds into beneficiaries’ accounts, she instead transferred it into Vantage’s operating account, and then into personal bank accounts. At least $6.2 million of the $15.2 million Ms. Richie embezzled was taken with Mr. Richie’s knowledge, according to a former employee of the firm.
In total, the pair admitted to more than 90 unauthorized distribution requests from 13 pension plans and 7 retirement plans from 2014 and 2017.
Ms. Richie now faces up to 12 years in federal prison, while Mr. Richie faces up to 10 years. They may be required to pay restitution as well as a $500,000 fine. However, forfeitable assets (a series of bank accounts) of the couple listed in the plea agreement total less than $155,000.
The Department of Labor’s Office of Inspector General, the Federal Bureau of Investigation, the Department of Labor’s Employee Benefits Security Administration, and the Texas State Auditor’s Office conducted the investigation.
