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)
1. Introduction
This complaint is submitted to report financial misconduct and fraudulent practices involving Principal Financial Group, particularly concerning the Principal U.S. Property Separate Account (PUSPSA). The evidence demonstrates systemic mismanagement, deception in financial reporting, and misuse of investment funds, negatively impacting thousands of retirement plan participants.
2. Whistleblower Information
The complainant has conducted extensive investigations into Principal Financial Group for over a decade, uncovering significant evidence of fraudulent activities that have harmed 401(k) investors. Due to advanced age and deteriorating health, this submission serves as an urgent effort to ensure accountability.
3. Respondent Information
- Entity: Principal Financial Group
- Relevant Executives & Decision-Makers: Former CEO Larry Zimpleman, Former President & CEO Dan Houston, mid-management executives involved in financial misrepresentation.
- Managing Director of Real Estate Investments: Involvement in high-risk, mismanaged investment transactions.
4. Summary of Allegations
Principal Financial Group has engaged in fraudulent financial activities, including:
- Misrepresentation of investment performance in retirement accounts, particularly variable annuities.
- Falsification of financial reporting related to retirement fund transactions, including misleading asset valuations.
- Unauthorized freezing of investor accounts, restricting access to retirement funds under vague legal pretexts.
- Questionable real estate investments, including excessive spending on luxury properties funded by retirement account assets.
- Financial mismanagement by key executives, leading to loss of investor funds.
5. Supporting Evidence
- Financial reports and investment statements showing discrepancies in asset valuations.
- Form 5500 filings and Schedule D reports demonstrating inconsistencies in reported plan participation.
- Records of unauthorized account freezes affecting thousands of investors.
- Case examples of mismanaged property investments, including the acquisition and extravagant renovations of a San Francisco building.
- Legal records and financial investigations regarding executive misconduct.
6. Legal Violations
These fraudulent activities likely violate:
- Employee Retirement Income Security Act (ERISA)
- Securities Exchange Act of 1934
- Federal fraud and misrepresentation statutes
- Investment accountability regulations under U.S. financial law
7. Request for Action
This complaint urges the DOJ to:
- Conduct a formal investigation into Principal Financial Group’s financial practices.
- Compel Principal to disclose accurate financial records related to retirement accounts.
- Seek restitution for affected retirement plan participants.
- Hold Principal executives accountable for financial misconduct.
