ED Magedson – Founder
Frankenmuth Mutual InsuranceOne Mutual Ave Frankenmuth , Michigan USA
Frankenmuth Mutual Insurance Frankenmuth Financial Group Executive Malfeasance-Ripping off Employees and Policyholders Frankenmuth Michigan
Frankenmuth Executives have been misusing policyholder funds for their own personal gain for years. Examples of their malfeasance include the following:
1) A trip to Greece that cost 5 million dollars for one week. The trip included 90 people, all executives and their spouses - thats about 53K per person.
2) Annual board meetings are held in places like Cabo at exclusive resorts for a week, when the meeting is only a couple hours long and all board members are local to Frankenmuth Michigan - all spouses go at the policyholders expense. The board members are treated lavishly and at the end of a week of luxury, they are asked to vote on executive pay and bonuses - it's a sham and a total conflict of interest. The CEO built a 12,000 sq foot home on a 1Million dollar plot of land at Bay Harbor as his "retirement home". It was over the top expensive and ridiculous and attained because of the conflicts with the board at the expense of policyholders.
4) Employee pensions were frozen in 2008. The board has refused to give employees the commuted value of their pensions, holding them hostage for personal gain. If an employee dies, they company keeps their pension. If they gave employees the commuted value of pensions, then employees could invest the money and it would accrue, but instead it's sitting frozen. Frankenmuth executives decided to freeze the pension because it was too costly, yet they could afford a week long trip to Cabo with the board, and a 5 million dollar one week cruise to Greece? They also took junkets to golf at pebble beach.
5) As a mutual company Frankenmuth is owned by it's policyholders. They schedule the annual policyholder meeting at around 6 or 7am on a Friday, knowning no own will show up except their retirees and on site staff, so they won't be challenged and can manipulate the voting to favor the executives self-serving agendas.
This company should be investigated as they violate Federal and State laws as well as having no ethics.
This report was posted on Ripoff Report on 01/01/2014 09:29 AM and is a permanent record located here: http://www.ripoffreport.com/r/Frankenmuth-Mutual-Insurance/Frankenmuth-Michigan-48181/Frankenmuth-Mutual-Insurance-Frankenmuth-Financial-Group-Executive-Malfeasance-Ripping-of-1112068. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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