Conseco Sued for Doctoring Loan Delinquency Rates, WSJ Reports
Carmel, Indiana, Feb. 14 (Bloomberg) -- Conseco Inc. was sued by two pension funds, which claim the insurance and finance company falsified records to lower its loan delinquency rate in an effort to boost the value of its securities, the Wall Street Journal reported.
The Anchorage Police & Fire Retirement System and the State of Louisiana Firefighters' Retirement System filed the suit in federal court in Indianapolis, the Wall Street Journal said. The suit, filed on behalf of thousands of investors who purchased Conseco's securities, seeks unspecified damages, the paper said.
The suit alleges that Stephen Hilbert, the former Chief Executive of Conseco who was ousted in April, and Bruce Crittenden, the president of the company's finance unit, made monthly visits to Conseco's collection division in Tempe, Arizona to oversee the doctoring of delinquent accounts to make them current, the paper reported.
A Conseco spokesman said the company found the allegations ``groundless'' after its own investigation, the paper said. The alleged fraud occurred between April 28, 1999 and April 14, 2000, the paper said.
(WSJ 2/13)
Feb/14/2001 0:44 ET
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