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Mon Dec 10, 2012, 11:24 PM

Hostess Workers' Pension Money Diverted For Other Uses: Report

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Source: huff po

lHostess Brands acknowledged for the first time in a news report Monday that the company diverted workers' pension money for other company uses.

The bankrupt baker told The Wall Street Journal that money taken out of workers' paychecks, intended for their retirement funds, was used for company operations instead. Hostess, which was under different management at the time the diversions began in August 2011, said it does not know how much money it took.

"It's not a good situation to have," Hostess CEO Gregory Rayburn told the WSJ.

In November, a judge approved Hostess' plan to pay $1.8 million in bonuses to 19 executives, according to CNBC. Rayburn declined to take a bonus but also avoided a company-wide pay cut that he imposed, Hostess told HuffPost.

Read more: http://www.huffingtonpost.com/2012/12/10/hostess-pensions-diverted_n_2271868.html



Now we know where they got all that bonus money.

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Response to DonRedwood (Original post)

Mon Dec 10, 2012, 11:27 PM

1. Have the forces that be ever heard of prison for thieves like this?

And I'm not talking about those "prisons" with tennis courts.

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Response to Bozita (Reply #1)

Mon Dec 10, 2012, 11:36 PM

2. It sounds to me like the elites raided the company for cash. They also never plowed back

money for improvements, renovations and more modern equipment. They were along for the ride IMO to gather all of the $$$$$ they could. These guys deserve jail time as do many CEOs and the crooked elites of corporations.

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Response to RKP5637 (Reply #2)

Mon Dec 10, 2012, 11:44 PM

3. Gonna have to stop all those campaign contributions.... NT

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Response to Bozita (Reply #1)

Tue Dec 11, 2012, 12:04 AM

5. Didn't the heads of WorldCom and HealthSouth do time?

Self-regulation, my foot. Stealing behind closed doors with a pen. All perfectly legal, one hand doesn't know what the other one is doing.

Well, in ENRON they certainly did. And I know it sounds totally nuts, but I don't believe Kenny Lay is dead, either

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Response to DonRedwood (Original post)

Mon Dec 10, 2012, 11:45 PM

4. It's a lousy, crappy thing to do, but it didn't come directly from employee paychecks.

This story, as written, is misleading: "money taken out of workers' paychecks"...no, it wasn't.

I do not believe that Hostess took employee 401(k) deductions out of their paychecks and then diverted that to company expenses. That would be a big time ERISA violation and they'd be in deep guano.

What they did was take corporate profits that had been set aside as future pension contributions and they diverted them to try to keep the company afloat. It's a lousy thing to do, especially since they probably had all the executive bonus money stashed away in a separate, golden lock-box ledger. But it's not criminal. Unethical, slimy, despicable? Yes. Criminal? It's be tough to find a judge that would say it was.

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Response to DonRedwood (Original post)

Tue Dec 11, 2012, 12:27 AM

6. Hostess management were/are a bunch of fucking thieves.

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Response to DonRedwood (Original post)

Tue Dec 11, 2012, 12:28 AM

7. Locking, sorry. LBN Dupe. Please continue discussion on LBN link below

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