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Press Release

Lincoln Woman Sentenced for Embezzlement and Theft from an Employee Pension Benefit Plan

For Immediate Release
U.S. Attorney's Office, District of Nebraska

United States Attorney Deborah R. Gilg announced that on December 16, 2014, United States District Court Judge Joseph F. Bataillon sentenced Karen L. Gagner of Lincoln, Nebraska, age 68, to a 5 year term of probation, following her conviction for embezzlement and theft from an employee pension benefit plan.  Ms. Gagner was also ordered to make restitution in the amount of $36,815.30.

Ms. Gagner was the Secretary-Treasurer, Director and an owner of Gagner Restoration, Inc., a Nebraska corporation.   Gagner Restoration, Inc. had established a 401(k) employee benefit plan for eligible employees’ retirement savings.  Ms. Gagner served as the 401(k) employee benefit plan’s trustee. Ms. Gagner also acted on behalf of Gagner Restoration, Inc. as the 401(k) employee benefit plan Administrator.

Beginning January 2008 and continuing through September 2011, Ms. Gagner, without permission or authorization, caused 16 check transfers totaling $94,485.64 to be made from Gagner Restoration, Inc. employee 401(k) accounts.   Ms. Gagner admitted she used the funds to sustain the operation of Gagner Restoration, Inc.

This case was investigated by the United States Department of Labor.

Updated February 4, 2015