Principal Life Insurance Company
Tracking Number: 20241005-0002
Subject: Securities & Mortgage Fraud in Commercial Real Estate by Principal Life Insurance Company (2007-2013)
Submitted By: Dennis R. Myhre, AIC
Date: October 5, 2024 (Original Submission)
Affected Parties: 401(k) Plan Investors in Principal U.S. Property Separate Account (PUSPSA)
The Principal Group of Companies has engaged in Commercial Mortgage fraud multiple times involving the Principal U.S. Property Separate Account. These activities usually involved a property developer and a banking institution as collaborators. This report simply discusses one of possibly dozens of other locations as well.
104 West 40th Street was reported in the 2007 PUSPSA Annual Report as a purchase. The Annual Report does not disclose other parties to the transaction, and often the actual property location is mis-stated to hide the actual location.
A recorded document at the NYC City Register provides the DOJ investigator all the information needed to prosecute Principal on a charge of Securities & Mortgage Fraud. This 16 page document is literally a book of knowledge as it relates to Mortgage Assignments, Spreader Agreements, and Mortgage Modifications and Severance Agreements, dating back to 1991. Even mortgages not attached to the subject commercial property were re-assigned to 104 West 40th Street, and eventually was “sold” to the Principal U.S. Property Separate Account on July 12, 2007. Existing unpaid debt on the date of acquisition appears to be $34,911,545.95. At the date of purchase, it also appears that Commercial Pass-Through Certificates also existed for the property involved. The property was listed as sold for $62.2 million in the 2010 PUSPSA annual report.
MORTGAGE ASSIGNMENT, 7-11-2007
Mortgage Loan History:
This section outlines the entire financial history of the mortgage(s) attached to 104 West 40th Street in New York City, including past assignments, consolidations, and modifications. The mortgage has changed hands multiple times—originally held by Landesbank Hessen-Thüringen Girozentrale, then Bank of America, then LaSalle Bank, and now ING USA Annuity and Life Insurance Company. The loan was originally $36,500,000, but the remaining balance at the time of assignment was $34,911,545.95. Why is this section important? It confirms that the mortgage is still active and its financial obligations remain intact. It shows how the mortgage was restructured and consolidated over time.
Mortgage Schedule & Consolidations:
The final section outlines all previous mortgages that were combined to form the existing mortgage. Multiple transactions modified, assigned, or spread the mortgage lien across different properties. The mortgage was consolidated into one single debt of $36,500,000 before the assignment to ING.
What This Means for the Mortgage:
The rights to the mortgage have officially transferred to ING USA Annuity and Life Insurance Company. The mortgage remains active, and payments must continue under the original terms. ING now holds all legal claims related to this mortgage. LaSalle Bank has no future liability—they’ve simply handed over ownership.
Which mortgages are still active?
Based on the document, the mortgage that remains active is the consolidated mortgage transferred to ING USA Annuity and Life Insurance Company. The document states that as of the assignment date (July 11, 2007), the remaining balance of the loan secured by this mortgage was $34,911,545.95.
Key Active Mortgage Details:
Mortgage Loan History… This section lists the entire financial history of the mortgage, including past assignments, consolidations, and modifications. The mortgage has changed hands multiple times—originally held by Landesbank Hessen-Thüringen Girozentrale, then Bank of America, then LaSalle Bank, and now ING USA Annuity and Life Insurance Company. The loan was originally $36,500,000, but the remaining balance at the time of assignment was $34,911,545.95. These facts confirm the mortgage is still active and its financial obligations remain intact. It shows how the mortgage was restructured and consolidated over time.
Mortgage Schedule & Consolidations:
The final section outlines all previous mortgages that were combined to form the existing mortgage. Multiple transactions modified, assigned, or spread the mortgage lien across different properties. The mortgage was consolidated into one single debt of $36,500,000 before the assignment to ING. What This Means for the Mortgage? The rights to the mortgage have officially transferred to ING USA Annuity and Life Insurance Company. The mortgage also remains active, and payments must continue under the original terms. ING now holds all legal claims related to this mortgage. LaSalle Bank has no future liability—they’ve simply handed over ownership. Which mortgages are still active?
Based on the document, the mortgage that remains active is the consolidated mortgage transferred to ING USA Annuity and Life Insurance Company. The document states that as of the assignment date (July 11, 2007), the remaining balance of the loan secured by this mortgage was $34,911,545.95.
Mortgage Loan Details:
Original Amount: $36,500,000.
Remaining Balance at Assignment: $34,911,545.95
Property Secured: 104 West 40th Street, Manhattan (Block 815, Lot 21)
Current Mortgage Holder: ING USA Annuity and Life Insurance Company
Loan Origin: Consolidation of multiple mortgages, including prior ones from Bank of America, LaSalle Bank, and Landesbank Hessen-Thüringen Girozentrale. The borrower (property owner) must continue making payments under this mortgage. ING USA now holds all financial and legal claims related to this debt. The document does not indicate that the mortgage was satisfied or released, meaning it was still active as of the assignment date. This document traces multiple transactions, consolidations, and assignments over the years before ending up with ING USA Annuity and Life Insurance Company. Here’s how the mortgage evolved:
Original Mortgage Creation (1994-1996)
Mortgage Origin: The mortgage was first issued by Landesbank Hessen-Thüringen Girozentrale (German bank) to various real estate entities.
The first major mortgage recorded was $9,000,000 on July 13, 1994. Additional mortgages followed, leading to a consolidation totaling $20,000,000 by July 31, 1996.
Expansion & Spreader Agreements (1996-1999)
Additional mortgages were added, modifying the loan balance. A Mortgage Spreader Agreement linked multiple properties, increasing the value to $24,600,000 in June 1999.
Bank of America Takes Over (2004)
On February 11, 2004, Bank of America, N.A. acquired the mortgage from Landesbank Hessen-Thüringen Girozentrale. The mortgage was consolidated again into a single first lien worth $36,500,000. It was officially recorded on April 1, 2004 under CRFN 2004000194880. 4. LaSalle Bank Assumes the Loan (2005)
LaSalle Bank National Association became the mortgage holder on January 31, 2005 via assignment from Bank of America. The mortgage was modified and assumed through a Loan Assumption Agreement on November 1, 2005. ING USA Becomes the Final Holder (2007).
Current Assignment:
On July 11, 2007, LaSalle Bank assigned the mortgage to ING USA Annuity and Life Insurance Company. At the time of assignment, the remaining balance was $34,911,545.95. Several transactions modified or released portions of the mortgage:
1996: Partial release from Bronx premises (Block 3733 Lot 9).
1999: Mortgage spread to additional properties at 400 Park Avenue.
1999: Property at 830 Third Avenue was released from the lien.
1999: Mortgage balance was reduced to $23,500,000.
2004: Loan was reconsolidated to $36,500,000.
2005: Loan assumption and modification agreements adjusted terms.
Final Outcome: The mortgage transferred multiple times, but its final balance before ING assumed it was $34,911,545.95. The assignment document does not indicate a satisfaction or final payment, meaning the loan was still active after ING USA acquired it.
Other Factors:
- Spreader Agreements – Expanding the Mortgage Across Properties. Note: A spreader agreement allows a lender to apply an existing mortgage to additional properties, increasing its collateral value.
Impact on This Mortgage
In 1999, a Mortgage Spreader Agreement spread the lien to multiple properties, including 400 Park Avenue.
This helped consolidate several previous loans into one unified debt. The total mortgage after the spread was $24,600,000, covering multiple buildings instead of just 104 West 40th Street.
Later Modifications to the Spread: In August 1999, 830 Third Avenue was removed from the lien. Later, in October 1999, 400 Park Avenue was released, leaving the lien focused solely on 104 West 40th Street. The mortgage balance was adjusted down to $23,500,000 after these releases.
- Mortgage Consolidations – Combining Loans Into One Debt
Consolidation agreements merge multiple smaller mortgages into one large loan, simplifying repayment terms.
Key Consolidations in This Document
1996 Consolidation: Combined two separate mortgages into a $20,000,000 loan.
1999 Consolidation: Merged all outstanding loans into a single first lien worth $24,600,000.
2004 Consolidation: Further modified the loan, increasing the total balance to $36,500,000.
Impact on the Loan Balance
Consolidations increased the principal amount over time.
They streamlined repayment, making it easier for the lender to manage.
The mortgage kept growing, but by the time ING USA acquired it in 2007, the balance had been reduced to $34,911,545.95.
- Ownership Changes – Transfers Between Lenders
Mortgage rights changed hands multiple times. Each transfer shifted control over who collected payments and managed the loan.
Mortgage Ownership Timeline
Originally Held By: Landesbank Hessen-Thüringen Girozentrale (1994).
Transferred To: Bank of America (2004).
Assigned To: LaSalle Bank (2005).
Final Transfer To: ING USA Annuity and Life Insurance Company (2007).
Impact of These Transfers
The borrower (property owner) did not need to refinance, but their loan was now managed by different lenders over time.
ING USA, as the final holder, gained the right to collect payments and enforce the mortgage.
LaSalle Bank no longer had liability once the mortgage was assigned away.
Final Status
The mortgage was still active after ING USA acquired it in 2007.
It had undergone several releases, consolidations, and ownership changes.
The final balance was $34,911,545.95, secured by 104 West 40th Street alone.
Why Does This Matter?
The borrower (property owner) must continue making payments under this mortgage.
ING USA now holds all financial and legal claims related to this debt.
The document does not indicate that the mortgage was satisfied or released, meaning it was still active as of the assignment date.
Mortgage History Timeline
This document traces multiple transactions, consolidations, and assignments over the years before ending up with ING USA Annuity and Life Insurance Company. Here’s how the mortgage evolved:
- Original Mortgage Creation (1994-1996)
Mortgage Origin:
The mortgage was first issued by Landesbank Hessen-Thüringen Girozentrale (German bank) to various real estate entities.
The first major mortgage recorded was $9,000,000 on July 13, 1994.
Additional mortgages followed, leading to a consolidation totaling $20,000,000 by July 31, 1996.
- Expansion & Spreader Agreements (1996-1999)
Key Changes:
Additional mortgages were added, modifying the loan balance.
A Mortgage Spreader Agreement linked multiple properties, increasing the value to $24,600,000 in June 1999.
- Bank of America Takes Over (2004)
Big Transfer:
On February 11, 2004, Bank of America, N.A. acquired the mortgage from Landesbank Hessen-Thüringen Girozentrale.
The mortgage was consolidated again into a single first lien worth $36,500,000.
It was officially recorded on April 1, 2004 under CRFN 2004000194880.
- LaSalle Bank Assumes the Loan (2005)
Next Transfer:
LaSalle Bank National Association became the mortgage holder on January 31, 2005 via assignment from Bank of America.
The mortgage was modified and assumed through a Loan Assumption Agreement on November 1, 2005.
- ING USA Becomes the Final Holder (2007)
Current Assignment:
On July 11, 2007, LaSalle Bank assigned the mortgage to ING USA Annuity and Life Insurance Company.
At the time of assignment, the remaining balance was $34,911,545.95.
1996: Partial release from Bronx premises (Block 3733 Lot 9).
1999: Mortgage spread to additional properties at 400 Park Avenue.
1999: Property at 830 Third Avenue was released from the lien.
1999: Mortgage balance was reduced to $23,500,000.
2004: Loan was reconsolidated to $36,500,000.
2005: Loan assumption and modification agreements adjusted terms.
Final Outcome
The mortgage transferred multiple times, but its final balance before ING assumed it was $34,911,545.95. The assignment document does not indicate a satisfaction or final payment, meaning the loan was still active after ING USA acquired it.
- Spreader Agreements – Expanding the Mortgage Across Properties. A spreader agreement allows a lender to apply an existing mortgage to additional properties, increasing its collateral value.
Impact on This Mortgage
In 1999, a Mortgage Spreader Agreement spread the lien to multiple properties, including 400 Park Avenue. This helped consolidate several previous loans into one unified debt.
The total mortgage after the spread was $24,600,000, covering multiple buildings instead of just 104 West 40th Street. Later
Modifications to the Spread
In August 1999, 830 Third Avenue was removed from the lien. Later, in October 1999, 400 Park Avenue was released, leaving the lien focused solely on 104 West 40th Street. The mortgage balance was adjusted down to $23,500,000 after these releases.
- Mortgage Consolidations – Combining Loans Into One Debt
Consolidation agreements merge multiple smaller mortgages into one large loan, simplifying repayment terms.
Key Consolidations in This Document
1996 Consolidation: Combined two separate mortgages into a $20,000,000 loan.
1999 Consolidation: Merged all outstanding loans into a single first lien worth $24,600,000.
2004 Consolidation: Further modified the loan, increasing the total balance to $36,500,000.
Impact on the Loan Balance
Consolidations increased the principal amount over time. They streamlined repayment, making it easier for the lender to manage. The mortgage kept growing, but by the time ING USA acquired it in 2007, the balance had been reduced to $34,911,545.95.
- Ownership Changes – Transfers Between Lenders. Mortgage rights changed hands multiple times. Each transfer shifted control over who collected payments and managed the loan.
-
Mortgage Ownership Timeline –
Originally Held By: Landesbank Hessen-Thüringen Girozentrale (1994). Transferred To: Bank of America (2004). Assigned To: LaSalle Bank (2005). Final Transfer To: ING USA Annuity and Life Insurance Company (2007). -
Impact of These Transfer – The borrower (property owner) did not need to refinance, but their loan was now managed by different lenders over time. ING USA, as the final holder, gained the right to collect payments and enforce the mortgage. LaSalle Bank no longer had liability once the mortgage was assigned away.
-
Final Status-
The mortgage was still active after ING USA acquired it in 2007. It had undergone several releases, consolidations, and ownership changes. The final balance was $34,911,545.95, secured by 104 West 40th Street alone.
