In 2013, John Freebairn asked me to loan him $30,000 from my company 401K plan in an effort to keep the agency from going out of business, with the promise that the loan would be paid back per the terms of the contract below. There are at least five other Freebairn executives who have fallen for the same promise, none of who have been paid.
It first started with John, Freebairn and Company President, requesting to delay paychecks. Then, paychecks started outright bouncing. Sometimes we were told it was coming, sometimes not.
In 2013, John Freebairn requested that I take a loan from my 401K to help improve cash flow and keep the agency afloat. In retrospect, I can’t believe I allowed myself to be manipulated that way, but he drafted a contract (above), promised to make timely payments, made it out to be a good deal for those who participated. Other than his unscrupulous paycheck practices, I had no reason to believe he would default on his promise. I had no reason to believe he’d outright steal from his employees.
Fast forward to July 2019, six and half years later, and that’s exactly what he did. He defaulted on my loan, and others’ loans under the same circumstances, converting them from 401K loans to 401K distributions and thus requiring tax penalties, fees, fines, and all kinds of additional hardship for those who loaned him money.
Does John Freebairn owe you money? Let us know.