Principal Financial Receives 2nd Subpoena from Spitzer

Associated Press
May 18, 2006


Principal Financial Group Inc. said earlier this week that it has received a second subpoena from New York Attorney General Eliot Spitzer, who is conducting an industrywide probe of insurance companies.

The second request came Friday, "seeking information associated with the marketing and sale of retirement products and services,'' the company said in a statement.

"Principal intends to fully cooperate with the inquiry,'' the statement said.

The Des Moines-based retirement and financial services company received its first request from Spitzer's office on March 4, 2005.

Principal spokeswoman Eva Quinn said then that Spitzer's office was seeking information on agreements between Principal and the marketers who sell retirement products for the company.

Spitzer's office has obtained 10 guilty pleas from executives at four companies as part of a New York state investigation of bid-rigging and price-fixing in the insurance industry.

Principal has 30,000 401(k) employer plans covering 2.3 million workers. Principal also sells life and health insurance plans and investment and banking services.

Copyright 2006 by Associated Press

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