A California financial services company under investigation for diverting hundreds of thousands of dollars in retirement funds it was supposed to invest on behalf of Hawaii teachers and university faculty faces similar accusations in at least four mainland school districts.

Plan Compliance Group, Ltd., with offices in Walnut Creek, California, served as the "third party administrator" responsible for processing retirement funds deducted from teachers salaries and making investments in designated tax-sheltered annuities, while assuring that the investments met government requirements.

During the month of September, however, the company failed to make at least a portion of those investments for teachers in Hawaii and the funds involved are missing.

University of Hawaii officials reported they have been unable to account for $420,000. The Department of Education, which did not disclose its losses, employs many more teachers and could be facing losses substantially higher than those reported by UH.

A check of school districts listed as clients on the Plan Compliance web site turned up a string of similar problems in Texas and California not previously reported here.

Linda Madon, director of financial services for the Plano Independent School District, located in a Dallas suburb, confirmed the company had failed to make scheduled investments in September. The Plano school district, which had contracted with Plan Compliance Group to administer its tax-deferred annuity program since 1999, now estimates its losses at $380,000.

The school district in Friendswood, Texas, midway between Houston and Galveston, also contracted with Plan Compliance Group and has experienced losses, Madon said. Friendswood officials could not be reached for comment this week.

The Socorro Independent School District near El Paso, Texas, reports an estimated loss of $280,000 after PCG failed to make its September 30 payments, according to district Communications Director Minerva Baumann.

"At that time, the district took action quickly and terminated the contract," Bauman said.

"My understanding is that this has something to do with business problems (at Plan Compliance) and the IRS," Baumann said. "We're going to pursue it and try to recover our money."

She said complaints have been lodged with the Texas attorney general, the state's insurance commissioner, and the FBI.

The Clovis Unified School District near Fresno, California, is also trying to track missing funds turned over to the company "in the October time frame", according to communications director Kelly Avants. Michael Johnston, the school district's business manager, estimated their loss at $169,000.

But Sue Klimek, an official in Michigan's Washtenaw Intermediate School District, said she has received no reports of problems with Plan Compliance Group in that area. The company reports contracts with four Michigan school districts.

Plan Compliance Group was registered as a Nevada company in November 1994, and registered in California in May 1997. Company officers are listed as Francis W. (William) Reimers, president; Ryan O. Reimers, Secretary; and James J. Zwack, Treasurer.

Company president Reimers could not be reached at the firm's Walnut Creek office for comment. The company closed its Honolulu office several months ago.