Wallace David Gregeron, 65, of Plymouth, Minn., is accused of looting more than $755,000 from his employees’ retirement savings in a brazen embezzlement scheme that spanned over two years. Federal prosecutors allege Gregeron, the president and sole owner of Lighting Affiliates, Inc., systematically drained both profit-sharing and individual 401(k) accounts tied to the company’s pension plan.
As the sole trustee of the Lighting Affiliates 401(k) Profit Sharing Plan, Gregeron had unchecked access to the fund. Between February 2011 and July 2013, he siphoned approximately $675,233.55 from the plan’s profit-sharing portion and an additional $80,667.23 from employees’ personal 401(k) accounts. The indictment details how he funneled the stolen money into corporate and personal bank accounts with cold precision.
To cover his tracks, Gregeron allegedly forged documents and lied to financial institutions, claiming the withdrawals were either reinvestments into another qualified plan or made at employees’ requests—neither of which were true. These false statements allowed him to bypass safeguards meant to protect worker retirement funds.
The stolen cash didn’t go toward business recovery or employee benefits. Instead, Gregeron used the majority to cover Lighting Affiliates’ operating costs and to fund a lavish personal lifestyle—splurging on country club dues, sports tickets, high-end clothing, and even tuition payments for his daughter.
Gregeron faced a federal magistrate judge today in U.S. District Court in Minneapolis. He is charged with six counts of mail fraud, two counts of money laundering, and one count of theft and embezzlement from an employee benefit plan. If convicted, he could face decades in prison and steep financial penalties.
The case was investigated by the U.S. Department of Labor Employee Benefits Security Administration and the Office of the Inspector General, and is being prosecuted by Assistant U.S. Attorney Kimberly A. Svendsen. The charges are allegations; Wallace David Gregeron is presumed innocent until proven guilty in a court of law.
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Key Facts
- State: Minnesota
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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