Posted in Your 401(k)

Is Your 401k Pooled Separate Account a Ponzi Scheme?

Is Your 401k Pooled Separate Account a Ponzi Scheme? The short answer is… maybe.  It all depends on how the Department of Labor defines your particular investment.  Title I of ERISA does not expressly describe what constitutes assets of an employee benefit plan. The Department has promulgated regulations identifying plan…

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Posted in Ethics & Compliance

Is Fiduciary Breach a Crime?

Criminal Activity under ERISA…. When there is a Fiduciary Breach, the United States Department of Labor has statutory authority to conduct criminal investigations under Section 506(b) of the Employee Retirement Income Security Act (ERISA).  The Act provides that the Secretary of Labor “shall have the responsibility and authority to detect,…

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Posted in Regulations

Will No Fiduciary Rule/Dodd-Frank Matter?

Still Cleaning the Swamp… Ok, its official.  President Trump has scrapped the Department of Labor Fiduciary Rule, along with the Dodd-Frank Wall Street reform and Consumer Protection Act.  The DOL Fiduciary Ruling was set to become law on April 10th.  The ruling would have impacted more than $3 trillion in…

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Posted in Money Laundering

Ponzi Schemes and Fake DOL Reporting

Fake Form 5500 reporting to the Department of Labor…A hidden Ponzi Scheme? The Department of Labor assesses heavy penalties when a Plan Sponsor or other administrative entity fails to meet form 5500 filing requirements.  This penalties are imposed in the event of incomplete filings unless it is determined that the…

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Posted in Regulations

Meeting Your Fiduciary Responsibilities…

Meeting Your Fiduciary Responsibilities… Offering a retirement plan can be one of the most challenging, yet rewarding, decisions an employer can make. The employees participating in the plan, their beneficiaries, and the employer benefit when a retirement plan is in place. Administering a plan and managing its assets, however, require…

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Posted in Ethics & Compliance

America Great Again… Principal Under Investigation

America Will Be Great Again… We now have a new President in the White House.  The media has referred to President Trump’s speech as a “call to arms,” and they are right.  Trump will be an isolationist, and he quickly gave notice to every politician standing on the platform with…

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Posted in Ethics & Compliance

Disaster Strikes in Recent SEC Ruling

Almost a decade ago, disaster struck when Principal Life Insurance Company successfully stole billions of dollars from 401k investors.  They illegally sold a part of Principal’s debt ridden commercial real estate loan equity portfolio to one of their separate accounts offered to investors, the Principal U.S. Property Separate Account.  During…

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Posted in Ethics & Compliance

Will Justice Prevail for 401k Investors?

Is there finally justice for thousands of investors? Justice…during a period of several years, beginning in 2006, Principal Life Insurance Company executives fraudulently stole $3.5 billion from hundreds of thousands of 401k investors that had invested in the Principal U.S. Property Separate Account (PUSPSA).    President and CEO Larry Zimpleman collaborated…

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Posted in Ethics & Compliance

$90 Million in Cost Overruns for 401k Investors

Principal Life saddles 401k investors with $90 million in cost overruns… In 2007, Principal Life, for the Principal U.S. Property Separate Account, decided to invest in a Marriott golf course resort construction project in San Antonio, Texas.  A serious departure from the norm, especially at the time when most golf…

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Posted in Ethics & Compliance

Truth in Your 401k Savings Plan

Fact or Fiction in Your 401k Savings Plan We are bombarded daily about opinions on what to eat, not to eat, drugs that cure cancer, or perhaps the viability of a certain investment you are considering.  Recently, a U.S. appellate court reinstated securities fraud charges against a pharmaceuticals company because…

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