who bought conseco finance

Furthermore, these customer loan files eventually made their way to his office at North American. True to his original concept of combining size with innovation, Hilbert established his enterprise in 1982 under two separate companies. Author: Wedgefield, South Carolina. Conseco subsequently severed its relationship with Merrill Lynch, which had handled Conseco's initial public offering. P. 50(b); Martin H. Redish, 9 Moore's Federal Practice 50.41 (3d ed.2003). Lyn-Flex West, Inc. v. Dieckhaus, 24 S.W.3d 693, 697-698 (Mo.App.1999). Next, North American claims that because the Missouri Uniform Trade Secrets Act has replaced all common-law remedies, no tort claim is maintainable unless the information qualifies as a "trade secret" under the statute. Conseco acquired the remaining 63 percent interest in American Life in September 1996. Podner said he copied the files in order to aid an employee who wished to make the transition to loan originator. Therefore, in 1990 Hilbert organized Conseco Capital Partners (CCP), a limited partnership that included several well-financed companies. CCP's first acquisition was Great American Reserve Insurance Co. for $135 million. GE Capital was sold for parts in 2013, and your mortgage was probably bought by GM Credit (now Ally Bank) or Wells Fargo. North American also claims that these individual indiscretions do not amount to "corporate" wrongdoing by North American. Importantly, though, Hilbert also searched for insurers that were inefficient and bloated with excess personnel. A number of these now former employees testified (at the preliminary injunction hearing) that because Conseco was leaving the subprime lending market, they worried about their future, especially considering the fact that they worked on commission. It purchased Lincoln Income Life Insurance Co. and Bankers National Life Insurance Co. for $32 million and $118 million, respectively. Similarly, an investment in a restaurant chain that featured buckets of spaghetti fizzled. Ins. Conseco Finance became insolvent after it failed to make a $4.7 million payment that was due Dec. 4. We review the district court's denial of a motion for judgment as a matter of law de novo, applying the same standard as the district court. On appeal, North American offers an eloquent and persuasive argument regarding the stringent requirements relating to the calculation of lost profits, particularly in relation to "net" profits. Connect the dots for them, get a supervisor involved, etc. The jury's $3.5 million compensatory award was issued by general verdict, after the jury returned verdicts for Conseco on two claims, unfair competition and tortious interference. Corp., 136 F.3d 276, 286 (2d Cir. As the company approached its 21st year of operations, Conseco remained confident that it could successfully attain its goals&mdash provide middle America with a wide array of financial and insurance products and services. The district court upheld each of the awards, noting that North American's conduct was "widespread and systematic" and "reprehensible," and that the award was "not an injustice, but rather appropriate in light of the evidence." Observers now say Green Tree's problems should have been obvious when Conseco, under the leadership of its co-founder Stephen Hilbert, bought it. Termination of the agreement, however, created bank and accounting fees of about $36 million and spurred a Merrill Lynch analyst to downgrade the company's stock. Shane and J-Ville are on the money here for sure this is a responsibility of the Title Co. from the 2003 deal. However, the district court denied North American's summary judgment motion relating to misappropriation of lead sheets, documents in Conseco's loan files, unfair competition, and tortious interference with business relations. As to the third Gore guidepost, North American concedes there is "no precise cognate in Missouri criminal law," but attempts to use the Missouri commercial bribery statute, RSMo 570.150.1(3). A potential obstacle to approval emerged this week when the Securities and Exchange Commission filed an objection to Conseco's disclosure statement and reorganization plan. However, the rules are such that "`technical precision is not necessary in stating grounds for the motion so long as the trial court is aware of the movant's position.'" ', As detractors waited for Conseco's money machine to disintegrate in the early 1990s, Hilbert clung to his original guiding principles. 'I think you'd hear the same thing if you were talking to Bill Gates or anyone else who has achieved success. Just as he had done to sell encyclopedias in the mid-1960s, Hilbert started knocking on doors in the late 1970s. [citation needed], In 1986 Conseco acquired Lincoln Income Life Insurance Company for $29 per share or $32.3 mil. On appeal, North American questions not whether Conseco proved sufficient connection of its damages to North American's alleged wrongful conduct but whether Conseco proved it had incurred damages at all. PITCHERS ARE RED HOT: The Great Lakes Loons gave up just 15 runs while taking five out of six Mid-Michigan police officer accused of defrauding Meijer of $10K, Crime log: Harassment complaints made by township residents. Shearson Lehman Brothers advised Lincoln Income Life Insurance. Pony Comp., Inc. v. Equus Comp. In September the company entered into a $344 million partnership with American Life Holdings, Inc., which included subsidiaries American Life and Casualty and Vulcan Life. I hate where our stock price is, but I cannot control the market. At the time of trial, Dime Savings had been acquired by Washington Mutual, a company with a net worth of several times this amount, North American argues that the punitive damages were an improper remedy for its discovery abuses. Under the terms of the proposed plan, which the company says is consistent with the agreement in principle announced on Dec. 18, 2002, CNC will substantially reduce its debt and future annual interest expense. 2003). The net worth of North American is approximately $3.6 billion.9 Here, the jury awarded punitive damages of $18 million and compensatory damages of $3.5 million, resulting in a 5.14 to 1 ratio. In other words, the movant cannot use a Rule 50(b) motion "as a vehicle to introduce a legal theory not distinctly articulated in its close-of-evidence motion for a directed verdict." Floyd Norris article discusses financial problems of Stephen C Hilbert, former head of Conseco Inc until his ouster last month; notes Hilbert was paid $119 million, not counting his stock options . 6 Are there fees for closing a bank account? The bankruptcy filing does not include Conseco's insurance operations, which regulators and the company insist are sound. Conseco was incorporated in 1979, began operations in 1982 and became a public company in 1985. We agree that both the lead sheets and the information contained in these customer files constitute trade secrets under the act. who bought out conseco finance servicing corp Before PNC ARCS, Mr. Vela was Vice President for National Community Financing for Conseco Finance Corp, and its predecessor Green Tree Financial Corp, both on the New York Stock Exchange. However, North American also introduced several new legal theories-related to damages-not distinctly articulated in its "Directed Verdict Motion." 1150 (E.D. Conseco is a leading provider of financial security for life, health and retirement needs. The purchase included Massachusetts General Life, Philadelphia Life, Lamar Life, and Wabash Life. The Green Tree acquisition stirred up numerous questions, including whether Conseco had too much debt and whether Green Tree, which had a past of dubious accounting practices, was growing too rapidly--25 to 30 percent a year--and providing loans to high-risk borrowers. In April 2014, it was ranked among the 50 most-trusted financial institutions in America by Forbes. The Supreme Court described the first Gore guidepost-the degree of reprehensibility of the defendant's conduct-as the most important indicium of the reasonableness of a punitive damages award. A study of the top U.S. insurers in 1991 showed that only 48 percent of their investments were fixed maturities, whereas over 50 percent were tied up in real estate and other less dependable assets. Merrion Group analyst David Erb said CFN may have bought a lot of Conseco's asset-backed securities, which trade at steep discounts, and may plan a controlled liquidation of the firm once it gets bankruptcy protection. Removing a state tax lien from public record, What Is a Lien Release on a Car and What to Expect, How to Secure a Lien Release in Illinois Instantly, How to Secure a Vehicle Lien Release Immediately, How to Get a Capital One Lien Release Hassle-Free, 3 Easy Steps to Filing a Release of Lien Form In New Mexico, State Tax Lien Statute of Limitations In California Explained. The problems started in 1998 when the company bought Greentree Financial, a mobile and manufactured housing lender, in 1998. When Conseco went hunting for acquisition candidates, it looked for organizations with sound asset portfolios. It also moved much of its Lincoln subsidiary from Kentucky. Although Hilbert admired the muscle of Aetna and its corporate counterparts, he was frustrated by their lack of innovation. [14], In 2015 February, CNO Financial sold its Hyderabad-based India operations to Cognizant.[15][16]. Indeed, through possession of these loan files, Conseco is in a unique position of being able to analyze its customers' specific financial needs and identify those current customers who may need additional Conseco financial services. Usually after the first few years of a mortgage lenders would prefer you to pay their loan off because the majority of profits are made in those initial years, with the lion's share from the fees made during the origination process. Our content is intended to be used for general information purposes only. 1996). Mr. Erb said that the buyers could sell off Conseco Finance's $2.9 billion credit card receivables portfolio and $6 billion . Although the two companies merged to form one holding company late in 1983, internal operations still reflected Hilbert's original concept. And, consistent with Rule 50, North American restated-in similar but not precise language-its previously articulated proximate cause damage theory, " [Conseco] failed to prove a causal connection between any conduct properly actionable and any loss to [Conseco]." Podner did not specify the exact number of loan applications copied. SNI bought Consolidated National Life Insurance Co. in 1983. Hilbert drifted into the insurance business in the 1970s. Id. Cir. Who bought out Conseco Finance Servicing Corp? Zachar, 363 F.3d at 72 (quoting Correa v. Hosp. Of course, you'll need to prove to the trustee or the mortgage company that you have paid off the loan. We have helped over 300,000 people with their problems. The following year Conseco increased its share to 90 percent. Upon emergence from Chapter . They might not be able to make things happen for you, but could give you some insight on how the county handles these matters. The original CCP partnership was changed to CCP Insurance, Inc., in 1993, and began acting as a holding company for its three subsidiaries. From an encyclopedia salesman in eastern Indiana, Hilbert had successfully boosted his status to that of corporate multimillionaire. Co. of N. Therefore, Conseco established a second misappropriation claim in regard to those specific loan files copied by Podner just prior to his resignation from Conseco. Although it is undisputed that the lead sheets themselves are not generally accessible to the public, North American asserts that much of the information contained within these lead sheets can either be purchased from various credit agencies or found in mortgage records, all of which are accessible to the public. All rights reserved. In some instances, the former Conseco office managers also took their staffs of loan originators with them to North American. This list included the names and phone numbers of these customers. In addition to avoiding real estate and junk bonds, Conseco's portfolio managers steered away from other risky and trendy investment vehicles of the 1980s, particularly Guaranteed Investment Contracts. Conseco generates potential customer leads through a computerized database, which Conseco developed, that analyzes financial information from over forty million individuals.2 Conseco's computer program identifies individuals who might "benefit" from its debt-consolidation services and compiles a list of the potential customers, which is sent to Conseco's branch offices throughout the country in the form of "customer lead sheets. Conseco Finance P.O. However, Conseco's headquarters remained in Carmel, and Hilbert planned to sustain his active management role there. All rights reserved. See Fed. Quite the contrary, North American encouraged others in its offices to replicate the St. Louis scheme, and designated its St. Louis office as a "model" to expand into other cities. I bought a 1995 boat trailer. Because we have found adequate evidence of the existence of a trade secret, we need not address North American's argument. The bad loans gave Conseco, the nation's largest mobile home lender, a glut of repossessed homes, leaving the parent company with a debt load that saddled its relatively healthy insurance operations with inferior credit ratings. The $1 billion bid pales in comparison to the $6 billion Conseco paid in 1998 for Green Tree Financial Corp., which became Conseco Finance. State Farm, 538 U.S. at 425, 123 S. Ct. 1513 (citing Pacific Mutual Life Ins. The Carmel, Ind.-based company expects to reduce costs by more than $150 million in an attempt to restore the Conseco Finance unit, and the overall company, to profitability. In December of that year Hilbert's two holding companies were merged under the name Conseco, Inc. With about 25 employees and assets worth $3 million, Conseco substantially improved the performance of its two acquisitions during 1983 and 1984. Conseco Finance Corp. will be split up and sold for a total of about $1 billion. The court also defined "readily ascertainable" to mean that the plaintiff did not spend a great deal of time or effort compiling that information. It further found that Conseco was likely to succeed on its claims of misappropriation of trade secrets against North American relating to the actions of Podner and Kattleman, but not Bristol. [citation needed], In 1998, Conseco purchased the former Greentree Financial, one of the largest financiers of mobile homes, in an attempt to diversify into consumer financial services. It's their baby.'. In the year 2000 his salary increased to $400,000. Conseco also filed a motion seeking a preliminary injunction and a permanent injunction to prevent the "raiding" of its employees. In addition, in 1992 the company paid $15 million for a 31 percent share of Chicago-based Eagle Credit Corp., an organization formed to provide financing to Harley-Davidson dealers and their customers. 1997). Consumers who financed a home purchase or refinance through Conseco Finance Servicing have been in for a wild ride since the company was sold in 2003. Hilbert had an unusual background for a chairman of a major financial institution. The caller informed Mambretti that all of his personal financial information-which he had entrusted to Conseco-had moved with the loan originator to North American's St. Louis office. The parent company expects to emerge from bankruptcy in May, hoping a speedy Chapter 11 exit will help its insurance operations avoid further deterioration. At the end of 2000, Conseco mobile-home loans totaled $26.3 billion, or about 55% of the firm's $46.6 billion in financial receivables, according to its annual report, filed Monday. Satisfied with its recipe for acquiring and improving insurance companies, Conseco stepped up its acquisition efforts in 1986. Privacy Policy. 'You have to ask the question, `Have they found a new way to make white bread? Wendt is celebrated for his business acumen and for his bitter and very public divorce from his first wife, Lorna, several years ago. However, we do not consider this offense to be "comparable" in either substance or magnitude-North American's actions were widespread and affected thousands of people, most without their knowledge, and involved confidential financial records. Continued Expansion and Growth Through Acquisitions: Mid- to Late 1990s. Once a lead sheet is received in a branch office, the office manager then forwards it to a loan originator, who calls these potential customers to offer Conseco's financial services. The proceeds from the sale of its finance unit are expected to be used to satisfy the creditors of Conseco Finance Corp., the company says. It is very important to do your own analysis before making any investment based on your own personal circumstances and consult with your own investment, financial, tax and legal advisers. San Francisco, 69 F.3d 1184, 1188 (1st Cir. Well, US Bank is the one we are refinancing with and the one saying they can't do it because it isn't clear.The problem with getting a hold of the other company is, they have went Bankrupt and are no longer a company. As Conseco headed into 1998, the company had a number of accomplishments under its belt. At trial, Conseco's evidence established that thousands of Conseco's lead sheets were in North American's possession, that employees worked simultaneously for both companies, that Conseco's loan documents were faxed to senior management at North American, and that employees from several of Conseco's offices had taken Conseco's loan documents to North American.3 Conseco offered expert testimony that approximately five percent of Conseco's lead sheets result in funded loans, each with an average-net profit per loan of $4,000. Address: 11825 North Pennsylvania Street Carmel, Indiana 46032 U.S.A. Telephone: (317) 817-6100 Fax: (317) 817-2847 http://www.conseco.com Statistics: Public Company Incorporated: 1979 as Security National of Indiana Corp. Employees: 17,187 Total Assets: $98.4 billion (1999) Stock Exchanges: New York Ticker Symbol: CNC Well, Conseco took over the accounts from Greentree and then Conseco went Bankrupt as well, which was acquired by DiTech. Conseco also asked that North American return all of the information that it had acquired from Conseco's former employees. 1994), aff'd in relevant part, 82 F.3d 785 (8th Cir. Long teetering on the brink, insurance and finance giant Conseco has filed for Chapter 11 bankruptcy protection. Well GreenTree Financial went bankrupt and their accounts were taken over by Conseco Financial. We will leave the question of whether tortious interference remains an independent claim to another court and another day. Conseco Inc., a major provider of life and health insurance, agreed to acquire Green Tree Financial Corp., a subprime-market lender best known for financing mobile-home purchases, in a stock. Principal Competitors: Metropolitan Life Insurance Company; New York Life Insurance Company; The Prudential Insurance Company of America. What is BenefitNOW account? Conseco filed a three-count complaint alleging 1) misappropriation of trade secrets, 2) unfair competition, and 3) tortious interference with business relations. Critics charged that Conseco's amazing asset growth was largely the result of questionable accounting techniques. The company's stock had returned an average of 39 percent a year since becoming a public company in 1985. Both motions were denied by the district court, and the case was submitted to the jury on Conseco's claims of unfair competition and tortious interference. Sit back and relax while we do the work. In 1995 Conseco formed a new division, Conseco Global Investments, and purchased the remaining shares of CCP. CNO Financial Group is the parent company of seven insurance companies, including Bankers Life and Casualty Company and Colonial Penn Life Insurance Company. 'We are going to stay away from food and beverage.' P. 50(a) (2) (stating that litigants must "specify the judgment sought and the law and the facts on which the moving party is entitled to the judgment."). 655 (8th Cir. Bhojwani is also a member of CNO's Board of Directors.[12]. The company, after 20 years in business, had grown tremendously--Conseco's total managed financial assets expanded from $8.2 billion in 1988 to $87.2 billion a decade later. It began insurance operations in 1982 and became a public company in 1985. If all these seem overwhelming, DoNotPay can actually get the lien release process started for you. By entering your email, you agree to sign up for consumer news, tips and giveaways from ConsumerAffairs. After all, a $100 investment in Conseco in 1988 would have returned $2,062 in 1993. Hopefully this was not just a dealer transaction and went thru a Title/Escrow. In an apparent bid to distance itself from past troubles, Conseco Inc. yesterday changed its name to CNO Financial Group Inc. Shareholders voted in favor of . Unlike a collection on your credit report, which simply notes delinquent payments, a lien prevents you from selling that asset until you have finished making the payments.

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