It is being reported that well-known financial advisor, Matthew D. Hutcheson, was recently indicted on federal charges that he used retirement plan funds for home renovations and to buy an interest in a ski and golf resort.
According to the U.S. Attorney’s Office in Boise, Mr. Hutcheson was a fiduciary and trustee to a trio of multiple employer plans: the G Fiduciary Retirement Income Security Plan, the National Retirement Security Plan 401(k) and the Retirement Security Plan & Trust.
In 2010, Mr. Hutcheson allegedly directed the record keeper of the G Fiduciary Plan to send a total of $2,031,688 via 12 wire transfers from the plan’s account, which was kept at Charles Schwab & Co. Inc., to accounts that were controlled by the adviser or were for his personal benefit.
Federal authorities also claim that in 2010, Mr. Hutcheson set up an entity called Green Valley Holdings to acquire a golf course and ski lodge at the Tamarack Resort in Idaho. He allegedly funneled $3 million in plan assets out of the Retirement Security Plan & Trust to help buy an interest in Tamarack, according to the complaint.
Federal authorities are seeking about $5.3 million in forfeitures from Mr. Hutcheson. Further, each count of wire fraud is punishable by up to 20 years in prison, while each count of theft from an employee pension benefit plan is punishable by up to five years.
Mr. Hutcheson has pleaded not guilty.
Mr. Hutcheson hosted a radio show called “The Retirement Hour with Matt Hutcheson” and authored a course called “Retirement Plan Management: Compliance, Reporting and Ethics.”
The White Law Group is investigating what liability the FINRA broker-dealers that employed Mr. Hutcheson may have for his actions. Even if a financial advisor is conducting business without the knowledge of his brokerage firm, the firm may still be liable for negligent supervision of their broker representative and may be responsible for investment losses in a FINRA arbitration claim.
If you have suffered losses due to your investing with Mr. Hutcheson and would like to speak to a securities attorney about your potential to recover those investment losses, please call The White Law Group’s Chicago office at 312-238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.