the FELONS who are MANAGING YOUR MONEY | Episode 142

Think Uncle Sam is protecting the money you’ve stashed away in 401k’s, IRA’s and mutual funds?  Think again, folks.  The feds are, time and time again, allowing convicted felons to handle your retirement money – even though that’s blatantly against the law.  And I’m about to tell you exactly which firms have the felons in their employ – and why Uncle Sam is so happy to break the law on behalf of Wall Street and to YOUR detriment.  That’s all RIGHT NOW  in Episode #142.

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Hello, SDI Nation – welcome to the podcast of record for savvy self-directed investors like you!

Today, I have a real doozy for you.  It’s going to disgust you… unless, of course, you like blatant collusion between Uncle Sam and Wall Street that represents REAL RISK to your money.

So, you ever heard of a QPAM?  Nah, most people haven’t.  It stands for “Qualified Professional Asset Manager”.  It’s a designation given by the feds to SOME companies that allows them to break the rules.

Yep, you heard that right.  You’ve certainly heard me discussing the notion of prohibited transactions on this show, that group of laws that limits how you can use the money in your retirement accounts… you know, things like your IRA can’t buy assets from or sell assets to most of your family members because… well because the opportunity for fraud among related-party transactions is just far too high.

And you know what?  That makes perfect sense.

What you may not know is that those rules also apply in large part to financial institutions if they’re managing retirement funds.  In other words, if, for example, you have funds placed at JP Morgan or Credit Suisse or Citigroup or Deutsche Bank or UBS or… well, you get the picture… then those institutions have to play by the rules too, and they can’t do deals with other institutions that are related to them… in other words, the companies that they own… or other companies with the same owner.  You get the idea.

Makes sense, right?  Remember:  Where YOU are concerned, the feds know that the opportunity for fraud is just far too high to allow transactions among related parties, so there are laws on the books for the exact same thing for the financial firms.

Enter the QPAM – Qualified Professional Asset Manager.  This is a convenient little designation that Uncle Sam offers to certain institutions that, fundamentally, allows them to totally ignore the related party rules.  Yes, you heard that correctly – if your financial institution wants to do business with other divisions of itself using your retirement funds… the QPAM status gives them the right to do that.

Sketchy, huh?

Oh, my friends, that’s not the half of it.

So, you’ll remember back in the 2005-2008 time frame, a little thing called the mortgage crisis happened.  Crazy things like no-doc loans and credit default swaps and mortgage backed securities were all the rage.  And there was so much money involved that the big Wall Street firms were willing to do anything – very nearly anything at all – to collect their huge pieces of the pie.  And so, many employees of those firms committed crimes… felonies, to be precise… and have since been convicted of those felonies.

And, of course, federal law prohibits financial institutions from being approved as a QPAM – that thing that lets them use your money to trade with themselves – if the firm employs convicted felons.

And that’s a big deal.  Literally billions of dollars in assets and income are at stake.

So you don’t have anything to worry about.  Uncle Sam has your back.

Yeah…. Right.

Last week, the Department of Labor – the part of the federal government that is in charge of regulations related to retirement funds – announced that it granted a bit of a reprieve to Credit Suisse.  You see, the problem Credit Suisse had is that they have felons working at their company, but they still want to have that special QPAM designation.

So what the Department of Labor say about this?  You might expect them to take the opportunity to stare down Credit Suisse firmly and say “your actions have consequences, and now you get to pay the price.”

But no, that’s not what good ole Uncle Sam did at all.  Rather, he said… “ya know, I think I’ll give you a pass, Credit Suisse.  You can keep your employees who are convicted criminals.  And you can continue to skim fees off the retirement assets of your customers by self-dealing those funds among your subsidiaries.  It’s all good, guys… business as usual!”

Of course, nobody from the Labor Department said it that clearly.  That would approach honesty, and that’s something we all know that we never get from the government.

But my friends, before you go and think that this is an exceptional case, and that the feds really do have your best interest at heart, just don’t even bother to think that.

That list of financial institutions that I read to you a bit ago – JP Morgan, Credit Suisse, Citigroup, Deutsche Bank, UBS – every single one of them have applied for waivers for their felonious activities in order to keep their QPAM status as well.

But good news – the Credit Suisse waiver grant was unusual.

Um….  Well… wait a minute.

I got that wrong.  Correction.

Apparently, the Department of Labor has granted that waiver EVERY SINGLE TIME it has ever been asked.  You heard that correctly:  The Department of Labor simply does not care if felons work for the firms managing your retirement funds.  In fact, every single time they’ve been given the explicit opportunity to turn away felons from working in proximity to your retirement funds, they’ve refused to do so.

So, let’s be clear:  Those financial firms, they’ve got some problems.  We know that.

But the bigger problem is with Uncle Sam… and the level of cronyism that’s developed between Washington DC and Wall Street in the past several years is nothing short of astounding… and disgusting.

What’s the answer?

Take control of your money yourself, people.  The time for blindly trusting Wall Street is behind us.  The time for trusting the government is behind us.  The only person you can trust to respect your capital is YOU.  You, and nobody else.

That is the essence of a Self-Directed Investor.

My friends, there’s a better way than by buying into conventional wisdom.  Heck, RIGHT NOW, I’ve got a connection with some great cash-flowing rental properties that are producing DOUBLE-DIGIT returns after ALL expenses… with reliability of income so high that nothing else compares.  If you could make double digits reliably, why would you ever risk your hard-earned capital on Wall Street?  Answer:  It simply doesn’t make any sense.  In fact, the only reason you do it now is because that’s what you’ve been conditioned to do.  How many of you have made a substantive study of investment alternatives outside of Wall Street?  A few of you have… and those of you for whom that’s true… almost none of you still invest substantially in Wall Street.

Folks, consider this clear revelation of collusion between Uncle Sam and Wall Street to be a wake-up call.  The stakes are nothing short of your retirement funds.  If you need help strategizing how to make your transition from Wall Street, I’d be delighted to help you.  Just stop by SDIRadio.com/consultation to set an appointment.

And my friends, if you’d like to learn more about some extraordinary cash-flow rental property investment opportunities… the time is now.  Stop by SDIRadio.com/cashflow and check it out.  Your jaw will drop when you see some of this stuff.

That’s all for now, my friends.  Tomorrow I’m going to share with you an important distinction I learned about evaluating cash flowing rental properties… I had a huge bias against a certain type of property, and you know what?  I was wrong… and it cost me a LOT of money.

I’ll tell you how, and why, in tomorrow’s episode of Self Directed Investor Radio.  And hey, would you do me a huge favor and tell one of your friends about this show?  I’d be so very grateful to you.

And hey… invest wisely today, and live well forever!

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