KOSCIUSKO—A Roanoke woman was arrested for withholding Pizza Supply of Indiana employees’ earnings from 401K plans.
Sue M. Gooding, 55, 7855 Popcorn Drive – 92, Roanoke, is being charged with theft, a level 5 felony.
Gooding is the sole owner and president of Pizza Supply of Indiana (“PSI, Inc.”) The company was formed in June 1981, operating in Kosciusko County until November 2016.
On Nov. 1, 2016, a former employee of PSI, Inc. viewed his 401K statements and found that money withdrawn from his paycheck for the plan was never deposited into the account.
The company was responsible for withholding retirement plan contributions from employees and had to transfer those contributions no later than 15 business days after the month they were withheld.
According to the affidavit of probable cause, Gooding failed to submit those withheld plan assets.
A subpoena was issued to Wells Fargo Bank, PSI, Inc.’s payroll service provider, requesting payroll records.
A total of $84,667.99 was withheld from employees’ paychecks from Jan. 1, 2011 to Nov. 24, 2016.
A subpoena was also issued to Transamerica Retirement Solutions, requesting Plan account statements.
$8,288.70 was deposited into employee 401K retirement accounts from Jan. 1, 2011 to Aug. 31, 2017.
On March 2, 2017, the former employee spoke to Gooding about the complaint, saying that the Department of Labor had also received a complaint. Gooding said that she had been working with the Department of Labor to find a solution.
Gooding also said that Pizza Supply ran out of money and that she did have 401K money due to the plan. She told the former employee that it would take six months to pay the money back.
On Sept. 20, 2017, Gooding submitted $6,647.75 to Transamerica. The contributions were not marked as deposits of withheld employee earnings. Instead, they were identified as safe harbor employer contributions.
Gooding withheld $76,379.29 from employees, but didn’t deposit it to the plan. Of that money, $25,528.71 was withheld from January to November 2015, and not deposited into withheld employee earnings.
Gooding was booked into the Kosciusko County Jail on Feb. 9, with a $6,000 surety and cash bond.