Matrix Trust Co. is being sued in a 401(k) class-action lawsuit by a Minnesota engineering firm that alleges that Matrix took millions of dollars from retirement plan accounts. MBA Engineering alleges that Matrix Trust unlawfully retained potentially hundreds of millions of dollars in 12b-1 fees, non-float cash interest, and float cash interest from more than 60,0000 customers through nondisclosure and concealment.

The plaintiff claims that Matrix did not disclose that customers’ assets were earning non-float and float cash interest, no disclosure whether they were earning 12(b)-1 fees and by how much, and that Matrix retained that money as compensation. Matrix vehemently denies any wrongdoing.

It should be noted that this is the same MBA Engineering that sued Vantage Benefits, claiming that they stole $2.3 million in retirement assets from the participants in the company’s plans. Jeff Richie and his wife have pleaded guilty to charges of embezzlement ad I question whether this lawsuit against Matrix has anything to do with what happened with Vantage since Matrix was the custodian of these plans and this might be a workaround that.