Posted in Mortgage Fraud

Principal sells defaulted loans to 401k Pooled Separate Accounts

Principal sells defaulted loans… In a January 31, 2013 Houston based real estate publication called Bisnow, the lead article was entitled “Best Friends:  TCC and PrinREI”.   These acronyms stand for Trammell Crow Company and Principal Real Estate Investors (PREI).  In a later article,  Mark Allyn, TCC’s senior managing director stated,…

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Posted in Mortgage Fraud

1412 Broadway… A classic example of Mortgage Assignment fraud

Beginning in 2006,  the Principal Group of Companies managed by former COO/CEO Larry Zimpleman, ranked near the top as one of the most corrupt companies providing services to 401(k) investors during that time.  The evidence can be found in almost every commercial real estate investment bought or sold for the…

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Principal stole billions
Posted in Mortgage Fraud

How Principal stole billions from 401k investors

As a Fund Manager, Principal stole billions of dollars from 401k investors prior to and during the 2008-2009 financial crisis. When a fund manager would accept investments from two or more ERISA plans, doing so triggered a notification requirement to the ERISA plan sponsor and an optional reporting requirement (filed…

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Posted in Ethics & Compliance Money Laundering Mortgage Fraud Regulations Your 401(k)

An Open Letter to President/CEO Dan Houston, The Principal Group of Companies

Mr. Dan Houston: Your company has been aware of my website since it’s inception three years ago.  Soon after publishing my first blog post, I received a call from a Principal Life Insurance Company attorney, advising if my website contained any information that was not truthful, he was instructed to…

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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 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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Posted in Mortgage Fraud

Principal’s missing plans…. where’s the money?

The penalties for filing willful violations on your form 5500 report with the government are severe… up to $100,000 fine and/or imprisonment up to 10 years.  The form clearly state the following…“Under penalties of perjury and other penalties set forth in the instructions, I declare that I have examined this…

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Posted in Mortgage Fraud

Forward Commitments on Defaulted Loans?

Forward Commitments or Defaulted Loans? On October 22, 2009, OliverMcMillian, a real estate developer, announced they would scrap plans for an open-air lifestyle shopping center in Lindenhurst, Illinois.  The announcement appeared in the Chicago Real Estate Daily.com news source powered by Crain’s Chicago Business.  The news item included the following:…

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Posted in Mortgage Fraud

Mortgage Fraud and Your 401(k)…

What is Mortgage Fraud? A decade ago, the FBI reported that the number of agents assigned to mortgage-related crimes increased by 50 percent between 2007 and 2008, an increase necessary to address a mortgage fraud caseload that has doubled in the three years prior to more than 1,400 pending cases….

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Posted in Mortgage Fraud

Fraud in our Courts… Henderson Lofts, llc (Part I of II)

Vested Housing Group, LLC v. Principal Real Estate Investors, Etal It’s not often that an investor has an opportunity to follow the progress of a financial crime, especially when it involves their own funds.  But that was the case with Henderson Lofts, llc, a few years ago when a lawsuit…

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