Pension Plans Looted
as Safeguards Weaken

FRAUD: Despite warnings, about $4 billion in retirement income
may have been taken by racketeers.

by Douglas Frantz and Robert L. Jackson

from The Los Angeles Times, Business, Part A, Page 1, October 29, 1989
partial reprint; contact The Los Angeles Times for complete text

EXCERPT:

" 'The nation's pension and welfare plans are vulnerable to fraud and corruptions because of a flawed enforcement strategy adopted by the Labor Department that relies too much on civil remedies and not enough on criminal prosecution,' said Raymond Maria, the acting inspector general."


OTHER POINTS:

-- "Most abuse is found among relatively small employers -- the same ones that are least likely to be covered by federal insurance."

-- As of 1989, 870,000 pension plans and only 260 auditors to monitor them

For complete text, contact The Los Angeles Times.