18 U.S.C. § 664 – Embezzlement from employee benefit plans
This statute makes it a federal crime to steal, misuse, or take money or assets from employee benefit plans, such as pension funds, retirement plans, and health or welfare benefit plans.
Section 664 protects employee benefit plans that are covered by federal law—specifically, plans governed by Title I of the Employee Retirement Income Security Act of 1974 (ERISA). These include pension plans, 401(k)s, profit-sharing plans, retirement trusts, and many employer-sponsored health or welfare benefit plans. The statute applies to anyone who handles or has access to plan assets, such as trustees, employees, administrators, service providers, and anyone entrusted with the funds.
What the law prohibits.
A person violates this statute if they knowingly:
- Embezzle or steal money or property belonging to an ERISA-covered employee benefit plan.
- Fraudulently take, hide, transfer, or convert plan assets for personal use or for someone else’s benefit.
- Use plan funds for unauthorized purposes, including business expenses, debts, or personal projects.
- Help or participate in any scheme that misuses or diverts plan assets.
The key point: anyone given access to plan assets must handle them properly. Misusing those funds—directly or indirectly—can lead to a federal charge.
Penalties.
A conviction under § 664 can lead to:
- up to 5 years in federal prison,
- fines, and
- restitution to repay any losses to the plan.
If you’re accused of misusing employee benefit plan assets, call (314) 900-HELP or contact our federal criminal defense attorneys for guidance.
