SMARTFINANCESOLUTIONS.NET - What are the laws regarding 401 distributions?

Find the best financial services for you at: SMARTFINANCESOLUTIONS.NET - What are the laws regarding 401 distributions? - I terminated my employment beacause my employer was on the verge of going out of business. I decided to take a 401 K distribution and spoke to an advisor about converting a portion of it to a roth. My employer gets the check from prudential and deducts taxes and penalties. I wasn't worried as I had intended to pay tax this year regardless. Anyhow, they have filed for bankruptcy and I haven't gotten my distribution and it's no longer invested. What recourse do I have. Is this not a crime, or is it merely civil? -