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In 1983, one of Martin's controlled partnerships made a
$615,000 payment representing a contribution into a split-funded
defined benefit retirement plan trust. Pursuant to the plan,
life insurance policies on Martin's and petitioner's lives were
to be purchased, and funds were to be deposited into a separate
investment account, to be invested at the discretion of Martin,
the plan's trustee and administrator. Martin and petitioner, as
participants in the plan, were each a beneficiary on each other's
life insurance policies and were entitled to retirement benefits
upon reaching retirement age. Before Martin and petitioner
reached retirement age or received any benefits, all assets of
the plan's trust were forfeited to the U.S. Government, as
described below.
Martin's Embezzlement Activity
During 1981, 1982, 1983, and 1984, Martin and a co-
conspirator, taking advantage of their relationship with First
United, illegally transferred in excess of $16 million from the
bank accounts of two labor unions’ employee benefit plan trusts
to private bank accounts for the personal use of Martin and his
co-conspirator.
In June of 1987, Martin was indicted for racketeering,
embezzlement, unlawful acceptance of pension kickbacks,
conspiracy to defraud the U.S. Government, and income tax
evasion.
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