Posted in Regulations

Annual Audits and your 401(k)…

As a Fiduciary, you have a legal responsibility to have the “best interest” of your plan participants when choosing investments for their 401(k) plan.  If you don’t understand the term “fiduciary,” then Google it until you find a description that you understand.  The DOL holds the Plan Fiduciary personally liable…

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Posted in Ethics & Compliance

“Frankly my dear, I don’t give a damn!”

“Frankly, my dear, I don’t give a damn“, was a phrase from the 1939 movie, Gone with the Wind, starring Clark Gable and Vivian Leigh.  The line is spoken by Rhett Butler (Gable), as his last words to Scarlett O’Hara(Leigh), in response to her tearful question: “Where shall I go? What shall I…

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Posted in Money Laundering

Money Laundering & Repurchase Agreements…

Anti-money laundering enforcement…  According to data from the Federal Reserve, there was $4.5 trillion of fixed income securities financed with repurchase agreements by 2008 (Gorton and Metrick 2012).  A repurchase agreement, also known as a “repo” is defined as “a form of short-term borrowing for dealers in financial assets.  The dealer sells the financial…

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401(K)
Posted in Money Laundering

The smoking gun… exposing Principal Life Insurance Company

Principal Life Insurance Company..Merriam-Webster defines a “smoking gun” as “something that serves as conclusive evidence or proof (as of a crime or scientific theory).”  We often hear the phrase in connection finding hard criminal evidence that is irrefutable.  For the past decade, I have been researching why Principal Life Insurance…

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Posted in Money Laundering

We need the “Untouchables…”

The Untouchables is an American crime drama that ran from 1959 to 1963 based on the memoir of the same name by Eliot Ness and Oscar Fraley, it fictionalized Ness’ experiences as a Prohibition agent, fighting crime in Chicago in the 1930’s with the help of a special team of agents handpicked for their courage, moral character,…

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Disclosures and your 401(k) Plan
Posted in Your 401(k)

Understanding your 401(k) Savings Plan

Understanding the 401(k) savings plan… Millions of American workers have invested a portion of their earnings in a 401(k) plan at work, but few workers actually understand how the ERISA regulated savings plan actually works.  BrightScope.com is the best independent resource for really understanding the program in general, and for…

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Posted in Regulations

Principal Life can steal your retained earnings

The Office of the Comptroller of the Currency is a major federal agency that regulates the regulators, as well as the entire banking system.  In their handbook published in February, 2014, the agency cautioned bank related fiduciaries that use Principal as a service provider.   A significant portion of their handbook…

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Posted in Mortgage Fraud

Co-Investing before the 2008 Crisis… Part I of II

You are 66 years old, your home is paid off, you have few bills, and no car loans.  You feel good because both you and your wife had contributed the maximum amount in your 401(k) plan for 20 years, and the payoff is near…Life is good!  Then one day a Sheriff’s…

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Posted in Ethics & Compliance

Financial Crime… To catch a thief

To catch a thief… To begin this post “To catch a thief,”, I submit that I am not a criminal investigator.  I have 30 years plus experience in insurance investigation work, including pre-trial investigations, accident reconstruction, and investigation and settlement of high dollar first party and third party claims, typically…

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Posted in Mortgage Fraud

Guasti…. a $77.4 million fraud

Guasti and Dry Creek Corporate Center…. Guasti and Dry Creek Corporate Center are vacant land properties owned as Principal U.S. Property Separate Account (PUSPSA) plan assets located in high density population areas, Guasti near Riverside, California, and Dry Creek Corporate Center near Denver, Colorado.  Both undeveloped, Guasti has 53.3 acres…

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