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JAMES WYNN, AN ENGINEER IN WICHITA, Kansas, had been all set to retire to the Philippines with his Filipino-born wife. For the past four years he had set aside 20% of his salary to save $40,000 in his company's 401(k) retirement plan. Or so he thought. Wynn, 63, was unable to cash out and retire this year because all his money had vanished. And his was not the only missing nest egg. Also unaccounted for were the savings of more than 180 of his colleagues at International Technical Services, a firm in Melville, New York, that hires engineers and places them...

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