My grievance is with City National Bank (CNB) regarding their mismanagement of my 401K account. The following information was sent today to the SEC and my congressman Henry Waxman. We all must take responsibility for our investment decisions, to include which firms we use for our investments, but I never expected the following from CNB. I learned my lesson.
My 401K with City National Bank (CNB) has a Plan Entry Date of 1/1/1998.
The Plan# is 216503. The plan name is "allstate communications, inc. 401 (K) PLAN".
Since my initial contribution to my CNB 401K I have made my own selections for how my money is allocated.
Prior to October 8 my 401K investment elections were in several stock funds, to include symbols NAMAX, PEOPX, DISSX, PESPX, and TEDMX.
On October 8 I transferred all money from the aforementioned stock funds into CNI CHARTER PRIME MONEY MARKET symbol CNMXX. My monetary value in CNMXX on October 8 was $100,317.98.
On January 2, CNB transferred all my money from CNMXX back into the aforementioned stock index funds.
On February 12 I logged into the CNB website fully expecting my money to still be in CNMXX. I was shocked to find that my money had indeed been moved to stock funds. I contacted Nanette Rojas, 1-800-660-6282 and 619-645-6162. She stated that CNB's intent was to reallocate my money into FIDELITY ADV FREEDOM 2025 A on Jan 2. She acknowledged that the bank made a mistake in moving my money into the stock funds NAMAX, PEOPX, DISSX, PESPX, and TEDMX. I received no notice from CNB regarding the reallocation of my money and I obviously provided no consent to the reallocation of my money. I asked Ms Rojas repeatedly why the bank would unilaterally change the allocation of my 401K without my consent. The response I got was that it was a one time event which will not occur again.
The value of my 401K account has dropped from $100,317.98 on October 8 to $90,789.82 as of Feb 19. The loss is due to CNB's reallocation of my money. Ms Rojas has said that CNB will credit my account by approximately $2,300, but this amount has yet to appear in my account. Even if CNB credits my 401K account by $2,300, then I will still have suffered a loss exceeding $7,000.
I am not a lawyer nor am I an expert on financial securities. Thus, it is not clear to me whether I am a victim of gross incompetence at CNB, or whether there exists a violation of CNB's fiduciary responsibility in managing 401K funds, or whether I am a victim of outright criminal fraud at CNB. I am certain that CNB's actions have resulted in a material monetary loss to me and I would not be surprised if other people who use CNB's investment services have also suffered similar losses.
In summary, I recommend that you think twice before using CNB for investment purposes.
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