Former Business Owner Accused Of Stealing From 401(k)s
February 12, 2018 at 5:19 p.m.
The former owner/president of Pizza Supply Of Indiana was arrested Friday after an investigation found she allegedly stole about $76,000 from employees’ 401(k) contributions over a five-year period.
Sue M. Gooding, 55, of Roanoke, was arrested and booked into the Kosciusko County Jail at 6:38 p.m. Friday for theft of over $50,000. Her preliminary bond was set at $5,000 surety and $1,000 cash.
Court documents filed Wednesday list the count against her as theft, a level 5 felony.
On Nov. 1, 2016, a man reported to Kosciusko County Sheriff’s Department deputy Josh Spangle that he was a former employee of Pizza Supply of Indiana. He viewed his 401(k) statements and found money withdrawn from his paycheck for his 401(k) plan that was never deposited into his 401(k) account.
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Gooding is the sole owner and president of Pizza Supply of Indiana Inc., a registered Indiana business, according to court documents. Pizza Supply was formed in June 1981 and operated in Warsaw and Kosciusko County until November 2016, court documents state.
The Better Business Bureau of Indiana website states the business had been operational for 61 years, starting June 1, 1956. It also lists Sue Gooding as the CEO and William Gooding as president.
The Pizza Supply website gives the address as 2162 N. Cessna Road, Warsaw. The phone rang busy this morning when called.
According to the Pizza Supply 401(k) Profit Sharing Plan agreement, Gooding established the Employee Retirement Income Security Act (ERSA) employee retirement savings plan on Jan. 1, 2008, and Gooding appointed herself as the Plan’s trustee.
Pizza Supply administered the Plan and was responsible for withholding employees’ contributions and transfer contributions into trust within 15 business days.
During his investigation, Spangle found Gooding and Pizza Supply failed to make the transfers.
A subpoena was issued to Wells Fargo Bank, Pizza Supply’s payroll service provider, requesting payroll records. Information from Wells Fargo Bank indicated $84,667.99 was withheld from employees’ paychecks 2011 to 2016.
A subpoena was issued to Transamerica Retirement Solutions, the Plan’s custodial trustee, requesting Plan account statements. The information from Transamerica indicated $8,288.70 was deposited into employee 401(k) retirement accounts from 2011, through Aug. 31, 2017.
Court documents state that since Jan. 1, 2011, through November 2016, $76,379.29 was withheld from employee earnings but never remitted to the plan for participants. Between January 2015 through November 2016, $25,528.71 was withheld from employee earnings but never remitted to the Plan, the documents state.
On March 2, 2017, Spangle spoke with Gooding over the phone. He explained to her that he was investigating a complaint involving the 401(k) plan. Spangle explained to her that the U.S. Department of Labor also received a complaint.
Gooding told Spangle she had been working with Paul Lee from the Department of Labor on the matter. She said she had been contacted by Department of Labor investigator Henry Dixon.
She also said that Pizza Supply ran out of money and that she does have 401(k) money due to the plan. She said she has monthly revenue coming in from selling Pizza Supply and has a plan on how to take care of the problem. Gooding said she believes it will take six months to pay the money back.
On Sept. 20, 2017, Dixon provided Spangle with information that Gooding had submitted $6,647.75 to Transamerica for the Plan. These contributions were not designated as deposits of withheld employee earnings, court documents state. They were identified as safe harbor employer contributions. Safe harbor employer contributions are a separate requirement of the Plan, and if unpaid are not related to the theft of employee contributions.
Gooding withheld $76,379.29 from employees, but did not deposit that to the plan, court documents state.
Of that money, $25,528.71 was withheld between January 2015 through and including November 2016 and not deposited into withheld employee earnings.
A warrant for Gooding’s arrest was filed Wednesday.
The former owner/president of Pizza Supply Of Indiana was arrested Friday after an investigation found she allegedly stole about $76,000 from employees’ 401(k) contributions over a five-year period.
Sue M. Gooding, 55, of Roanoke, was arrested and booked into the Kosciusko County Jail at 6:38 p.m. Friday for theft of over $50,000. Her preliminary bond was set at $5,000 surety and $1,000 cash.
Court documents filed Wednesday list the count against her as theft, a level 5 felony.
On Nov. 1, 2016, a man reported to Kosciusko County Sheriff’s Department deputy Josh Spangle that he was a former employee of Pizza Supply of Indiana. He viewed his 401(k) statements and found money withdrawn from his paycheck for his 401(k) plan that was never deposited into his 401(k) account.
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Gooding is the sole owner and president of Pizza Supply of Indiana Inc., a registered Indiana business, according to court documents. Pizza Supply was formed in June 1981 and operated in Warsaw and Kosciusko County until November 2016, court documents state.
The Better Business Bureau of Indiana website states the business had been operational for 61 years, starting June 1, 1956. It also lists Sue Gooding as the CEO and William Gooding as president.
The Pizza Supply website gives the address as 2162 N. Cessna Road, Warsaw. The phone rang busy this morning when called.
According to the Pizza Supply 401(k) Profit Sharing Plan agreement, Gooding established the Employee Retirement Income Security Act (ERSA) employee retirement savings plan on Jan. 1, 2008, and Gooding appointed herself as the Plan’s trustee.
Pizza Supply administered the Plan and was responsible for withholding employees’ contributions and transfer contributions into trust within 15 business days.
During his investigation, Spangle found Gooding and Pizza Supply failed to make the transfers.
A subpoena was issued to Wells Fargo Bank, Pizza Supply’s payroll service provider, requesting payroll records. Information from Wells Fargo Bank indicated $84,667.99 was withheld from employees’ paychecks 2011 to 2016.
A subpoena was issued to Transamerica Retirement Solutions, the Plan’s custodial trustee, requesting Plan account statements. The information from Transamerica indicated $8,288.70 was deposited into employee 401(k) retirement accounts from 2011, through Aug. 31, 2017.
Court documents state that since Jan. 1, 2011, through November 2016, $76,379.29 was withheld from employee earnings but never remitted to the plan for participants. Between January 2015 through November 2016, $25,528.71 was withheld from employee earnings but never remitted to the Plan, the documents state.
On March 2, 2017, Spangle spoke with Gooding over the phone. He explained to her that he was investigating a complaint involving the 401(k) plan. Spangle explained to her that the U.S. Department of Labor also received a complaint.
Gooding told Spangle she had been working with Paul Lee from the Department of Labor on the matter. She said she had been contacted by Department of Labor investigator Henry Dixon.
She also said that Pizza Supply ran out of money and that she does have 401(k) money due to the plan. She said she has monthly revenue coming in from selling Pizza Supply and has a plan on how to take care of the problem. Gooding said she believes it will take six months to pay the money back.
On Sept. 20, 2017, Dixon provided Spangle with information that Gooding had submitted $6,647.75 to Transamerica for the Plan. These contributions were not designated as deposits of withheld employee earnings, court documents state. They were identified as safe harbor employer contributions. Safe harbor employer contributions are a separate requirement of the Plan, and if unpaid are not related to the theft of employee contributions.
Gooding withheld $76,379.29 from employees, but did not deposit that to the plan, court documents state.
Of that money, $25,528.71 was withheld between January 2015 through and including November 2016 and not deposited into withheld employee earnings.
A warrant for Gooding’s arrest was filed Wednesday.