Principal Life Insurance Company
Tracking Number: 20241005-0002
Subject: Financial Misrepresentation by Principal Life Insurance Company (2008-2013)
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)
To Whom It May Concern,
I am submitting this disclosure under whistleblower protection protocols concerning potential fraudulent financial practices involving Principal Life Insurance Company and Wells Fargo Bank. These concerns primarily relate to the management of employer-sponsored 401(k) plans and a series of questionable real estate transactions involving the property at 333 Market Street, San Francisco, CA.
Background & Allegations
- 401(k) Asset Mismanagement
- Principal Life Insurance Company is a major service provider for employer-sponsored 401(k) plans.
- In a 2012 letter from CFO Lillis to federal financial regulatory agencies, Principal reported that approximately 45% of their $152.1 billion in total assets were “non-guaranteed,” meaning employer-sponsored 401(k) funds were exposed to market risks without institutional protections.
- The letter stated that Principal retains no liability risk for these funds, raising concerns about whether 401(k) contributions are being mismanaged or diverted.
- 333 Market Street Transactions & Potential Mortgage Origination Fraud
- In 2006, Principal Real Estate Investors, under the direction of Managing Director Mark Hanrahan, acquired 333 Market Street for $370 million, a significant markup from the reported $150 million purchase price paid by Wells Fargo just months earlier.
- The transaction was arranged through Wells Fargo subsidiary Eastdil Secured, suggesting potential internal collusion or asset inflation.
- In mid-2010, Principal sold 333 Market Street to a South Korean investment group led by Hana Asset Management.
- Public reports indicated a purchase price of $333 million, but additional sources suggested it was $516 million, leading to a $183 million discrepancy in the transaction records.
- Further inconsistencies in ownership documents indicate that the mailing address of the Korean-held private LLC (Hd333, LLC) matched the prior Principal-affiliated LLC (333 Market St LLC), an unusual administrative arrangement raising concerns about transparency in property ownership.
Request for Investigation
I respectfully request that the DOJ and appropriate federal agencies investigate the following:
- Whether Principal Life Insurance Company engaged in deceptive practices regarding the management and investment of 401(k) assets.
- The role of Wells Fargo Bank and Eastdil Secured in potential artificial asset inflation and questionable real estate transactions.
- The nature of the financial discrepancies in the sale of 333 Market Street, including any undisclosed profits or misappropriated funds.
- Any concealed agreements or fraudulent mortgage origination activities linked to Wells Fargo and Principal Real Estate Investors.
I am prepared to provide additional supporting documentation and cooperate with any investigative inquiries.
Thank you for your attention to this matter.
Sincerely,
Dennis Myhre, AIC
