Tracking Number: 20241005-0002
Subject: Financial Misrepresentation by Principal Life Insurance Company (2008-2013)
Submitted By: Dennis R. Myhre, AIC
Affected Parties: 401(k) Plan Investors in Principal U.S. Property Separate Account (PUSPSA)
Summary of Allegations: This complaint concerns potential financial misrepresentation and discrepancies in commercial real estate transactions conducted by Principal Life Insurance Company, acting as the plan provider for the Principal U.S. Property Separate Account (PUSPSA). Specifically, the sale of 1875 Lawrence Street, Denver, Colorado involves a shortfall of $1 million from the reported exchange of funds.
According to the original Real Estate Purchase and Sale Agreement, the agreed-upon sale price between PUSPSA and Harvard Property Trust, LLC was $35 million. However, the PUSPSA 2008 Annual Report records the sale at $34 million, thereby omitting $1 million from the transaction records presented to investors. The financial discrepancy warrants further investigation for potential misrepresentation, financial misconduct, or fraud.
Transaction Details:
- Property: 1875 Lawrence Street, Denver, CO
- Seller: Principal U.S. Property Separate Account (PUSPSA)
- Buyer: Harvard Property Trust, LLC
- Purchase Agreement Sale Price: $35 million
- Reported Sale Price in Annual Report: $34 million
- Unaccounted Funds: $1 million
Additionally, the Real Estate Purchase and Sale Agreement stipulates that the buyer must deposit $2 million into escrow, broken into two payments:
- Initial deposit: $1 million within two business days of agreement execution
- Second deposit: $1 million upon election to proceed, before approval date
The omission or misrepresentation of these escrow deposits may have misled investors about the financial transactions conducted by PUSPSA.
Legal Implications: Under U.S. federal and state financial regulations, the withholding or misrepresentation of property valued at $1 million or more may constitute felony theft or grand larceny, violating corporate fiduciary duty and securities laws. Given that this discrepancy may be part of broader financial misconduct concerning PUSPSA, I urge the DOJ to investigate similar transactions from 2008 to 2013, where conflicting real estate sale prices may have led to additional losses for investors, possibly totaling hundreds of millions of dollars.
Request for Investigation: I formally request the Department of Justice conduct a full investigation to determine whether Principal Life Insurance Company engaged in fraudulent misrepresentation, financial misconduct, or securities violations. If evidence of wrongdoing is confirmed, I respectfully request appropriate enforcement actions be taken to ensure accountability and restitution for affected investors.
Supporting Documents:
- Sales & Purchase agreement (Page 2, showing $35 million price)
- 2008 PUSPSA Annual Report (Page 21, showing $34 million sale price)
Declaration: I affirm that the information provided in this report is accurate to the best of my knowledge. I submit this report in good faith with the intention of bringing transparency and accountability to this matter.
Dennis Myhre, AIC
[email protected]
