Richmond Actuary Fakes Credentials, Faces Prison

RICHMOND, VA – A Fredericksburg man is facing serious time after admitting he wasn’t qualified to do the job he was getting paid to do. James M. DeGrandis, Jr., 54, pleaded guilty today to one count of making a false statement related to the Employee Retirement Income Security Act (ERISA), a federal law governing retirement and health plans.

According to court documents, DeGrandis worked as an actuary for a Richmond-based firm, but crucially, hadn’t met the legal requirements to be designated an ‘enrolled actuary.’ Despite this, DeGrandis signed off on a critical Schedule SB form – part of the IRS Form 5500 – for an Employee Retirement Account Plan and Trust in Baltimore. This Schedule SB is no simple paperwork; it’s an actuarial report detailing the plan’s financial health, including asset valuation, funding levels, and potential risks.

Essentially, DeGrandis put his name to a document vouching for the financial stability of a retirement plan when he lacked the credentials to do so. The implications could have been devastating for plan participants, relying on those figures for their future security. Authorities didn’t specify the size of the plan or potential damages, but such falsifications are taken extremely seriously.

Federal prosecutors say DeGrandis knowingly misrepresented his qualifications, risking the integrity of the entire system. He now faces a maximum penalty of five years in prison when sentenced on February 14, 2017. While the maximum sentence is set by Congress, the actual sentence will be determined by Judge M. Hannah Lauck, taking into account sentencing guidelines and other factors.

The case was brought by Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Michael Schloss, Regional Director for the Employee Benefits Security Administration’s Philadelphia Regional Office. Assistant U.S. Attorney David T. Maguire is leading the prosecution. This isn’t just about one man’s deception; it’s about protecting the retirement savings of hard-working Americans.

Grimy Times will continue to follow this case as it moves toward sentencing. For more information, see the official press release from the U.S. Attorney’s Office for the Eastern District of Virginia, and court documents available on PACER (Case No. 3:16-cr-134).