Matthew Hutcheson is an Idaho-based investment advisor and recognized authority on fiduciary standards. He has testified before U.S. Department of labor in 2008 in support of increasing disclosure requirements for advisors to improve the observance of fiduciary standards. In 2010 he testified before congress on the need to increase regulatory standards to improve fiduciary conduct. In 2011 Hutcheson was hired by the California State teachers’ Retirement System as consultant on vetting and screening advisors. On 17 December 2010 the San Francisco Chronicle referred to him in a headline as “Nation’s Top Fiduciary.”
On 10 April 2012 Hutcheson was indicted on 17 counts of wire fraud and 14 counts of theft. Mr. Hutcheson pleaded not guilty and was released a day later into third-party custody.
U.S. Attorney’s Press Release: http://www.justice.gov/usao/id/news/2012/apr/hutcheson04112012.html
Fiduciary advocate indicted
April 15, 2012 6:01 am ET
Well-known fiduciary advocate Matthew D. Hutcheson was indicted last week on federal charges that he used retirement plan funds for home renovations and to buy an interest in a ski and golf resort.
The plan adviser was arrested Wednesday in Idaho and indicted on 17 counts of wire fraud and 14 counts of theft. Mr. Hutcheson pleaded not guilty and was released a day later into third-party custody.
Mr. Hutcheson has been on the advice industry’s radar for some time. He hosted a radio show called “The Retirement Hour with Matt Hutcheson” and authored a course called “Retirement Plan Management: Compliance, Reporting and Ethics.”
According to the U.S. Attorney’s Office in Boise, Mr. Hutcheson was a fiduciary and trustee to a trio of multiple employer plans: the G Fiduciary Retirement Income Security Plan, the National Retirement Security Plan 401(k) and the Retirement Security Plan & Trust.
$2M IN ALLEGED TRANSFERS
In 2010, Mr. Hutcheson allegedly directed the record keeper of the G Fiduciary Plan to send a total of $2,031,688 via 12 wire transfers from the plan’s account, which was kept at Charles Schwab & Co. Inc., to accounts that were controlled by the adviser or were for his personal benefit.
Federal authorities also claim that in 2010, Mr. Hutcheson set up an entity called Green Valley Holdings to acquire a golf course and ski lodge at the Tamarack Resort in Idaho. He allegedly funneled $3 million in plan assets out of the Retirement Security Plan & Trust to help buy an interest in Tamarack, according to the complaint.
Federal authorities are seeking about $5.3 million in forfeitures from Mr. Hutcheson. Further, each count of wire fraud is punishable by up to 20 years in prison, while each count of theft from an employee pension benefit plan is punishable by up to five years.
A call to Mr. Hutcheson went to a voice mail system that was not set up. His attorney, Dennis Charney, did not immediately return calls. Neither responded to e-mails requesting comment.