[5], CNO Financial was incorporated in 1979 as Security National of Indiana Corp. by Stephen Hilbert. These loan files included personal financial statements of Conseco customers, loan applications, appraisals, income calculation worksheets, W-2 forms, payroll information of Conseco customers, income calculation worksheets, tax returns, and bank statements of Conseco customers. When you register for our products and services, we also collect certain personal information from you for identification purposes, such as your name, address, email address, telephone number, social security number, IP address, and date of birth. 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. Adherence to the rule is mandatory. On appeal, the district court's determination of punitive damages is reviewed under an abuse of discretion standard. 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. 2 Who bought out Conseco Finance Servicing Corp? The company also acquired additional shares of Bankers Life Holding Corp., a holding company for Bankers Life and Casualty, upping its stake to 81 percent in 1995. Pony Comp., Inc. v. Equus Comp. Green Tree's balance sheet "was a disaster in. Finally, we turn our attention to the punitive damage award and consider the three distinct challenges raised by North American-whether the award was (1) against the weight of the evidence, (2) in violation of due process, and (3) grossly excessive. Andrey knows everything from warm-up to hard workout. Federal law allows you to withdraw as much cash as you want from your bank accounts. 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. 2001). 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. . On May 11, 2010, the board of directors officially approved changing the holding company's name to CNO Financial Group. To its investors' chagrin, however, several of Conseco's past forays into nontraditional investments had not performed as well as its core insurance and financial holdings. Source: International Directory of Company Histories, Vol. Homeowners who faithfully pay the mortgage every month have every right to expect the mortgage company to agree to release the lien on the property once the debt is paid. Importantly, though, Hilbert also searched for insurers that were inefficient and bloated with excess personnel. In 1998 Conseco hoped to continue its growth and strong financial performance. Some analysts believed that it was just a matter of time before Conseco would fall prey to the asset devaluation that had plagued other fast-growing insurers of the 1980s. Conseco was incorporated in 1979, began operations in 1982 and became a public company in 1985. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. It's hard to . We value your privacy. 1995)). 1994)). Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. Indeed, Conseco had closed thirty of its 150 branch offices within the previous year. 6 Are there fees for closing a bank account? Either way, as I mentioned, there was a title company involved and that title company should be able to confirm they paid Greentree in full. They demonstrate what should be obvious: Single-digit multipliers are more likely to comport with due process, while still achieving the State's goals of deterrence and retribution, than awards with ratios of 500 to 1 [as in Gore], or in this case, of 145 to 1." All Rights Reserved. This instant case involves thousands of customers-located throughout the country-who were identified through a complex computer system. Our content is intended to be used for general information purposes only. In July 1996 Conseco bought Life Partners Group, Inc. for about $840 million. The original CCP partnership was changed to CCP Insurance, Inc., in 1993, and began acting as a holding company for its three subsidiaries. [6] SNI bought Consolidated National Life Insurance Co. in 1983. 'You have to stay where your strengths are,' acknowledged Ngaire E. Cuneo, executive vice-president of corporate development, in the October 25, 1993, issue of the Indianapolis Business Journal. Because Conseco's performance contrasted so sharply with that of most of its competitors in the early 1990s, many analysts were skeptical. 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. Did Yamamoto really say the sleeping giant quote? We have worked very hard with certain key creditor constituencies to develop a plan that will provide the reorganized Conseco with a capital structure that can be supported by cash flows from ongoing operations, Shea said in a statement. When Dwight Eisenhower gave the Atoms for Peace speech what constructive use of nuclear energy was he introducing? Conseco Inc.'s money-losing consumer finance unit would be split into two pieces and sold for $1 billion under the winning bid in an all-night bankruptcy auction that concluded Wednesday. Flowers & Co. LLC, Fortress Investment Group LLC and Cerberus Capital Management _ offered to buy all of Conseco Finance. Conseco acquired the remaining 63 percent interest in American Life in September 1996. 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." Unsubscribe easily. Despite Hilbert's insistence that Conseco's success reflected a commitment to sound business practices, skepticism continued. Furthermore, these customer loan files eventually made their way to his office at North American. In recent years, Conseco has been one of the most successful insurance companies in the United States. R. Civ. R. Civ. individuals with low credit scores. Also, some employees noted that Conseco had recently placed significant restraints on its area managers' loan authority. Conseco also asked that North American return all of the information that it had acquired from Conseco's former employees. Then, in May, Conseco paid $505 million to acquire Pioneer Financial Services, Inc., a provider of life and health insurance products. In Vigoro, the court noted that if the contacts had been located throughout the country the information would have been considered to be a trade secret. In order to recover damages for unfair competition, Conseco was required to prove 1) the existence of a trade secret, 2) the communication of the trade secret to another, while that former employee was in a position of trust and confidence with Conseco, and 3) the use of the trade secret that damaged Conseco. 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. Bristol also returned a number of documents at his deposition, in accordance with the district court's TRO. The $1 billion bid pales in comparison to the $6 billion Conseco paid in 1998 for Green Tree Financial Corp., which became Conseco Finance. In addition, Conseco typically achieved significant efficiency gains by implementing advanced information and data processing systems. You can close the account by going to the bank yourself, by phone, online on their platform even by sending them a mail. North American next argues that, even if the loan files and lead sheets are considered trade secrets, Conseco still "did not make a submissible case of either the fact of damages or the amount of damages." 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. Conseco was one of the United States' fastest growing insurance companies right away. Despite a few unwise choices, Conseco was recognized for its highly conservative approach to investing. Principal Subsidiaries: Bankers Life and Casualty Company; Conseco Annuity Assurance Company; Conseco Direct Life Insurance Company; Conseco Health Insurance Company; Conseco Life Insurance Company; Conseco Life Insurance Company of New York; Conseco Medical Insurance Company; Conseco Risk Management, Inc.; Conseco Senior Health Insurance Company; Manhattan National Life Insurance Company; Pioneer Life Insurance Company; United Presidential Life Insurance Company; Washington National Insurance Company; Conseco Capital Management, Inc.; Conseco Variable Insurance Company; Conseco Fund Group; Conseco Finance Corp. Bet you are. Id. BMW of North America, Inc. v. Gore, 517 U.S. 559, 575, 116 S. Ct. 1589, 134 L. Ed. Conseco filed a three-count complaint alleging 1) misappropriation of trade secrets, 2) unfair competition, and 3) tortious interference with business relations. During the same period, the value of Conseco's assets ballooned from $11.8 billion to $16.6 billion--a gain of about 30 percent. Throughout the 1980s Wall Street perceived Conseco as young and inexperienced. Its insurance subsidiaries provide life insurance, annuity and supplemental health insurance products to more than four million customers in the United States. Corp., 136 F.3d 276, 286 (2d Cir. Here the damage award is further supported by the remaining tortious interference claim. You can reach us on phone number (480) 361-0034, fax number or email address . Therefore, Conseco established a proper misappropriation claim with regards to these fourteen loan files. Shearson Lehman Brothers advised Lincoln Income Life Insurance. Hilbert told the Indianapolis Star and News, 'Everything at Conseco is hitting on all cylinders except the stock price. See Fed. In situations I've dealt with, we just supply our title company with a copy of the final settlement statement that paid off the trust deed and usually that is sufficient for them to remove it from title. Long teetering on the brink, insurance and finance giant Conseco has filed for Chapter 11 bankruptcy protection. One of the biggest losers in the bankruptcy is the Thomas H. Lee Company, a Boston firm that specializes in investing in troubled companies, which bought $500 million in Conseco convertible. [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. Satisfied with its recipe for acquiring and improving insurance companies, Conseco stepped up its acquisition efforts in 1986. Conseco planned to retain its proven strategy of using innovative management techniques to increase the value of acquired holdings. As Conseco headed into 1998, the company had a number of accomplishments under its belt. Our office is located on 7360 S Kyrene Rd, Tempe, AZ, Finally, Scott Bristol, a former area manager at Conseco's St. Charles, Missouri, office, testified that although he did not have personal knowledge that any loan originators working under him in St. Charles made copies of customer loan applications, it was possible that such copying did occur. The only way to change mortgage servicers is to refinance your loan and move to a lender that services the loans they originate. Well GreenTree Financial went bankrupt and their accounts were taken over by Conseco Financial. If so, it should list the title company who handled it and you can reach out to them. Appeal from the United States District Court for the Eastern District of Missouri, E. Richard Webber, J. Indeed, the conduct involved repeated actions in multiple offices.13 North American's actions also involved trickery and deceit, and an utter disregard for Conseco and-even more heinously-the privacy of its customers. However, he speculated that as many as ten of these former Conseco customers could have switched their business to North American. 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. Conseco, in its "First Amended Complaint," added two additional counts-participation in breach of fiduciary duty, and a separate count for injunctive relief. Kimzey v. Wal-Mart Stores, Inc., 107 F.3d 568, 576 (8th Cir. For visitors with visual disabilities, access to this website, including our FICO Data Privacy Policy, is available through assistive technologies, such as BrowseAloud, JAWS, VoiceOver, Narrator, ChromeVox, and Window-Eyes. 2003). As Conseco increased its value and expanded its asset base, suspicions about its performance began to wane in 1993 and 1994. We have helped over 300,000 people with their problems. Many of the cutbacks were accomplished by integrating Conseco's consolidated marketing, investment, and product development operations into the companies that it purchased. 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.'" It also agreed to commit $5 million in 1993 to Rick Galles Racing, an Indy Car racing team in which Conseco owned a 33 percent share. 1993). Well, Conseco took over the accounts from Greentree and then Conseco went Bankrupt as well, which was acquired by DiTech. [4] Its insurance subsidiaries provide life insurance, annuity and supplemental health insurance products to more than four million customers in the United States. Mathias v. Accor Economy Lodging, Inc., 347 F.3d 672, 676 (7th Cir. 'This (criticism) goes back to instinct and gut feeling, and no hard facts,' said money manager Martin Lizt in a January 1993 issue of Financial World. But in what amount? The problems started in 1998 when the company bought Greentree Financial, a mobile and manufactured housing lender, in 1998. This handbook states that "non-public information about customers, dealers, and others is strictly confidential.". Im going TO SAY THIS IN BIG BIG LETTERS.. __________________________________________________. It quickly moved Lincoln's headquarters from Memphis to Conseco's burgeoning offices in Carmel, Indiana. Because the evidence is susceptible to a reasonable inference supporting the verdict, we affirm the district court's decision to submit this claim to the jury and its subsequent denial of judgment as a matter of law. (formerly Conseco, Inc. (from Consolidated National Security Corporation)) is a financial services holding company based in Carmel, Indiana. The contents of this site may not be republished, reprinted, rewritten or recirculated without written permission. However, when passing on a district court's determinations concerning the constitutionality of the punitive award, we use a de novo standard of review. How many deaths are caused by flu each year. 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 President and Chief Executive Officer William J. Shea said that following approval of the disclosure statement by the court, Conseco will commence the solicitation of votes of its creditors for the approval of its Plan of Reorganization. US Bank doesn't really care if you pay them off or not, either you pay them off and they regain that ability to extend new credit to someone else or you keep paying the monthly payments and they make interest off your loan. In April 2014, it was ranked among the 50 most-trusted financial institutions in America by Forbes. Conseco Inc.'s money-losing consumer finance unit would be split into two pieces and sold for $1 billion under the winning bid in an all-night bankruptcy auction that concluded Wednesday. In order to continue acquiring new companies, Hilbert knew that he would have to find a new source of funding that was not linked to debt-burdened Conseco. In 1998 Conseco diversified and moved into finance and lending by acquiring Green Tree Financial Corporation, the nation's leading lender of mobile home loans. We find sufficient evidence of "malice or outrageousness" as defined by Missouri law to permit an award of punitive damages in this case. Furthermore, Conseco takes reasonable steps to ensure the secrecy of these files. The auction for former Green Tree Financial in St. Paul, held Tuesday in Chicago, resulted in a Wednesday morning deal, according to news reports. 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. However, North American also introduced several new legal theories-related to damages-not distinctly articulated in its "Directed Verdict Motion." Critics charged that Conseco's amazing asset growth was largely the result of questionable accounting techniques. Are there fees for closing a bank account? of Mo., Inc., 162 F.3d 991, 998 (8th Cir. CNO Financial Group, Inc. (formerly Conseco, Inc. (from Consolidated National Security Corporation)) is an American financial services holding company based in Carmel, Indiana. The Court, however, went on to note that " [w]hile these ratios are not binding, they are instructive. So, both Greentree and Conseco are bankrupt, noone to talk to, Conseco new company says all they do is Insurance stuff now, nothing with mortgage or anything..so, how am I supposed to be able to get this lein released from companies that are bankrupt now? The company went on an acquisition binge, taking on a huge debt load that is now the basis of its plight. However, we cannot allow the punitive damage award to stand at $18 million, and remit the award to $7 million. For the foregoing reasons, we affirm the opinion of the district court in part and reverse in part. 1995)). Conseco, based in the Indianapolis suburb of Carmel, employs about 10,000 people and listed $52.3 billion in assets and $51.2 billion in debts in its bankruptcy filing. However, if you had any outstanding fees or charges, the bank can subtract those from your balance before returning it to you. Questions persisted, and in late 1999 Conseco announced plans to pare debt and slow growth. Conseco also presented evidence that in its Davenport, Iowa, office-after the filing of the lawsuit-the area manager, Rick Lasek, worked for both companies, copied thousands of Conseco lead sheets, sent them to North American, copied all of the HUD settlement statements from his office, and stated that his goal was to "put the mother [* * * *]ers [Conseco] out of business." In the year 2000 his salary increased to $400,000. Conseco's Employee Handbook specifically states that "non-public information about customers, dealers, and others is strictly confidential." In 2003 we refinanced this home through US Bank, however, whenever that was done apparently US Bank never got a CLEAR title on our mobile home.So, we are trying to refinance this now with US Bank, however, they said they can't do it because the title isn't clear and still shows Greentree Financial as a Lein Holder even though US Bank paid this off in 2003. This list included the names and phone numbers of these customers. It is clear to us that Conseco derives economic benefit from this information. They may or may not get the point. The business has over $3.4 billion of statutory reserves. CFN would pay $700 million for most of the operations of Conseco Finance, which employs 5,400 people. Dec 17 2008. Bristol also testified that before leaving Conseco, he compiled a list of 100 to 200 customers who had previously engaged in business with Conseco. P. 50 in its request for judgment as a matter of law and thus has not preserved this argument for appeal. In Conseco's case, a bunch of once-rich executives and big creditors took the hit. Walsh, 332 F.3d at 1158. It also moved much of its Lincoln subsidiary from Kentucky. 966, 968 (E.D. Cooper Indus., Inc. v. Leatherman Tool Group, Inc., 532 U.S. 424, 435, 121 S. Ct. 1678, 149 L. Ed. One caveat to this rule is that some banks will charge an early account closure fee if you close an account soon after opening it. But my net worth's in Conseco. As stated so eloquently-and simply-by Judge Posner of our sister circuit, "punitive damages should be proportional to the wrongfulness of the defendant's actions." Are you trapped in your home by your low mortgage rate? Conseco Finance, based in Minnesota, however, has been shut out of capital markets since August when it missed a multimillion-dollar payment to Lehman Brothers. Whenever your loan is sold, you get a letter from the new servicer notifying you of the change. Conseco is a leading provider of financial security for life, health and retirement needs. ", Conseco organizes these lead sheets according to color-the most promising are colored red, leads that are considered good are colored white, and merely decent leads are colored blue. Who is the new host of Dancing with the Stars? Later, at trial, he admitted they were working for both companies at the same time. . Who bought out Conseco Finance Servicing Corp? 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. Sign up for our free summaries and get the latest delivered directly to you. By the end of 1987, Conseco's assets had grown to a whopping $3.4 billion, and its workforce had grown almost twenty-fold since 1984, to nearly 500. Also, in order to be considered a trade secret, the information must be the subject of efforts that are reasonable under the circumstances to maintain its secrecy. There was an article in Business Insider awhile back that had this same topic. St. James Press, 2000. Now, you think another third party would be a title company? The purchase included Massachusetts General Life, Philadelphia Life, Lamar Life, and Wabash Life. Get the news you need delivered right to you. In July 1996 Conseco bought Life Partners Group, Inc. for about $840 million. Share & Print. 'I dropped out to sell encyclopedias,' Hilbert explained to Barron's in 1991. Podner did not specify the exact number of loan applications copied. Most observers see Conseco's purchase of Green Tree Financial as its downfall. A review of the record leaves us with no doubt that the jury had sufficient evidence before it (albeit conflicting evidence) to conclude that North American had engaged in unfair competition and caused damage to Conseco. How to reverse Diabetes Belly fat: The removal of Diabetes Michigan AG sues Bay Co. contractor who allegedly drained wetland, Mancino's GM accused of embezzling over $100,000, Larkin Township greenhouse to reopen as Rooted by Keits on Friday, Thousands gather for 37th Freeland Walleye Festival despite rain, clouds, MHS alum Krawczak 'oozing confidence' for T'wolves, Loons win 5 of 6 at Fort Wayne behind dominant pitching. In fact, in October 1993 Hilbert formed Conseco Entertainment Inc., a holding company for Conseco's future entertainment investments. Each account takes a certain monthly fee in order to be maintained but the good news is that if you choose to close it yourself, it is free. [citation needed] In 1986 Conseco acquired Lincoln Income Life Insurance Company for $29 per share or $32.3 mil. No Bank can refuse to close your deposit account and even loan account if you are repaying all dues with interest. Furthermore, even if North American's pre-verdict objection could be construed as a challenge to the submissibility of the unfair competition claim,8 the tortious interference judgment remains. Conseco Finance P.O. The venture failed. Conseco, Inc. The parent company expects to emerge from bankruptcy in May, hoping a speedy Chapter 11 exit will help its insurance operations avoid further deterioration. of Elec. 1981); Hinkle v. Christensen, 733 F.2d 74, 76 (8th Cir. Also, North American's senior manager, Wade Hershel, received faxes containing Conseco loan documents originating from Conseco's St. Louis branch office from loan originators with this clandestine dual-employment status. 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. 1996). They also bought life insurance company Colonial Penn later that year, changing their name to Conseco Direct Life. "This court has made it very clear that where the court submits a single damage question for multiple claims and where the evidence supports the actual damage award on any of the claims, the award will not be set aside." Do you have the closing paperwork (Final HUD-1 settlement statement) from that refinance? 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. Newsletters: Get local news delivered directly to you, Chemic alum among NU's top hitters, outfielders. Id. During this same period, Conseco's mortgage service division downsized. Green Tree was the nation's largest lender in the mobile home market, which turned out to be much riskier than Conseco had realized. More details on software and accessibility are available at WebAIM.org. Id. Cir. CCP's first acquisition was Great American Reserve Insurance Co. for $135 million. (Wilton, Connecticut) - Today, Wilton Re completed the acquisition of Conseco Life Insurance Company ("CLIC") from CNO Financial Group ("CNO"). CNO Financial Group is the parent company of seven insurance companies, including Bankers Life and Casualty Company and Colonial Penn Life Insurance Company. 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 Most banks do not charge a fee to close a bank account. Hopefully this was not just a dealer transaction and went thru a Title/Escrow. Id. The purchase created the biggest independent casualty/property agency in the state of Indiana. He received $8.8 million in pay and exercised stock options worth almost $30 million. But when the company servicing the mortgage has been sold several times, it's hard to know where to go to demand the lien release. The company said it would divest of non-core assets, and it sold seven percent of its stock to private investment firm Thomas H. Lee Company for $478 million. 3 of the Int'l Bhd. The lead sheets are a product of a specialized-and apparently quite effective-computer program that was uniquely Conseco's. Well GreenTree Financial went bankrupt and their accounts were taken over by Conseco Financial. Your situation isn't that uncommon, mortgage companies go out of business all the time and title companies are used to dealing with issues like these. Get free summaries of new Eighth Circuit U.S. Court of Appeals opinions delivered to your inbox! Therefore we begin by noting that the district court gave correct and distinct instructions relating the purpose and standard for punitive damages, and turn our focus to the reprehensibility of North American's conduct. At both the close of Conseco's case and the close of all of the evidence, North American filed motions for directed verdict, which were argued before the court. Conseco also filed a motion seeking a preliminary injunction and a permanent injunction to prevent the "raiding" of its employees. Importantly, the company had eliminated much of its debt burden by 1994. No matter what type of lien release it is that you need help with, whether, on a property, vehicle, unpaid taxes, or more, DoNotPay is the legal expert that you can rely on. This is the case for many customers of Conseco Finance Servicing Corporation. But if the lender of record has ceased to exist, it falls to the current holder of the mortgage to release the lien. The portfolio of mobile-home loans and other consumer finance products will be sold under an agreement with two groups of investors.
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