Ex-Mine Owner Convicted in Pension Case
A federal court jury has convicted the former owner of a New Mexico potash mine of embezzlement and conspiracy in the looting of millions of dollars from the company’s pension funds.
The jury returned its verdict in U.S. District Court in Albuquerque on Tuesday against Thomas D. Lundberg, a Dallas businessman who took over a potash mine in southeastern New Mexico and bilked its pension funds of $9 million before the company declared bankruptcy. Convicted along with Lundberg was John Sanders, who had been his lawyer in the deal.
The case was cited by the inspector general of the U.S. Labor Department as an example of lax enforcement of pension fund laws, partly because the embezzlement was not discovered until the company was in bankruptcy. The federal Pension Benefit Guaranty Corp. was forced to take over payments to the firm’s workers and retirees.
Lundberg was convicted on one count of conspiracy and four counts of embezzlement. He faces a maximum sentence of five years on each count. Sanders was convicted of one count of conspiracy and two counts of embezzlement and faces five years on each. They were acquitted on six mail fraud charges. Sentencing was set for May 4.
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