In July 1996 Conseco bought Life Partners Group, Inc. for about $840 million. This list included the names and phone numbers of these customers. The facts and issues in this case arise from actions taken by North American to acquire information about individuals that is contained in Conseco's confidential files. Servicing Corp. v. North American Mortgage Co., 24 Fed.Appx. Mr. Erb said that the buyers could sell off Conseco Finance's $2.9 billion credit card receivables portfolio and $6 billion . Id. Having concluded that these lead sheets and loan files constitute trade secrets, we must next consider whether Conseco produced evidence of actual or threatened misappropriation of these trade secrets. Conseco's Employee Handbook specifically states that "non-public information about customers, dealers, and others is strictly confidential." Learn more. In addition, Hilbert sought firms that had developed unique insurance and annuity products or had devised innovative distribution systems for their offerings. What's somewhat baffling is we haven't missed a [earnings] number. Whenever your loan is sold, you get a letter from the new servicer notifying you of the change. The portfolio of mobile-home loans and other consumer finance products will be sold under an agreement with two groups of investors. 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. We will consider the evidence in the light most favorable to the verdict, giving the prevailing party the benefit of all reasonable inferences, Id. 1994)). We see them around but we don't know what goes on behind the scenes. Who owns Wilco life insurance? But my net worth's in Conseco. Some of these former employees also expressed concern about Conseco's overall future financial performance. 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. Get the news you need delivered right to you. Two of the loan originators that Lasek recruited to leave Conseco with him eventually returned to work at Conseco-after a change of heart-and testified about Lasek's actions. Shortsellers--investors that had bet on Conseco's downfall--were enraged when its earnings continued to multiply. The purpose of requiring the moving party to articulate the ground on which the Rule 50 judgment is sought "is to give the other party an opportunity to cure the defects in proof that might otherwise preclude him from taking the case to the jury." 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. Can I withdraw all the money from my bank account? In order to avoid this constitutional infirmity, the punitive damages award must be remitted to $7 million, an amount that is sufficiently punitive, but that does not violate notions of fundamental fairness. Bhojwani is also a member of CNO's Board of Directors.[12]. It also moved much of its Lincoln subsidiary from Kentucky. Andrey is a coach, sports writer and editor. We have been trying that with US Bank now for 6 months, they aren't doing anything about it becuase our sitaution is unique, we are trying to refinance to pay off another US Bank property, so to them it isn't urgent so they can keep getting both mortgage payments, which is what sucks. 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. James S. Cole of St. Louis appeared on the brief. The court also defined "readily ascertainable" to mean that the plaintiff did not spend a great deal of time or effort compiling that information. Conseco Finance / GreenTree St. Peter Street St. Paul, Minnesota U.S.A. Flowers & Co. LLC, Fortress Investment Group LLC and Cerberus Capital Management _ offered to buy all of Conseco Finance. 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. GE Consumer Finance Is Conseco Finance still in business? Unsubscribe easily. Typically, the lender issues a "notice of release" when that happens, and the lien is taken off the books, and the trust deed may be returned to you. Observers now say Green Tree's problems should have been obvious when Conseco, under the leadership of its co-founder Stephen Hilbert, bought it. [citation needed] In 1986 Conseco acquired Lincoln Income Life Insurance Company for $29 per share or $32.3 mil. [citation needed], From its opening in 1999 until 2011, the company (when it was known as Conseco) held the naming rights to the home arena of the NBA's Indiana Pacers; the naming rights were transferred to Bankers Life in 2011. The Fastest Way to Remove a Lien From a Title in Texas, How to File a Lien Release Form in Utah Quickly, How to Pay Your Houston Water Bills Online Hassle-Free, How to Remove My Case From The Internet Instantly, How to Recover Your Forgotten Workday Password Hassle-Free, Sending Money to an Inmate Has Never Been Easier, Credit Card Dispute Letter Template That'll Get Your Money Back, Finding out if there is a lien on your house, Finding out if there is a lien against you, Limitations of selling a car with an existing lien, Subscribing to free trials without being charged after, Skipping the queue when contacting customer service, Construction materials (for materials and labor). Stephen C. Hilbert Stephen C. Hilbert, the man who founded Conseco 21 years ago and built it into a highflying insurance industry giant through a series of acquisitions, was forced to resign yesterday. 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. However, the company's rapid growth finally began to pique the interest of industry analysts and mainstream investors. HOwever, DiTech said that they only acquired ACTIVE accoutns from Conseco and since it was closed prior to DiTech acquiring them, that they can't do anything about it. Conseco's mortgage service division originates residential loans for individuals in the "subprime" lending market, e.g. In response, Conseco sent a copy of Mambretti's letter to North American with a request that North American "cease and desist" from taking and using information contained in Conseco's loan files. What happens to my money if the bank closed my account? The problems started in 1998 when the company bought Greentree Financial, a mobile and manufactured housing lender, in 1998. 'We are going to stay away from food and beverage.' Importantly, though, Hilbert also searched for insurers that were inefficient and bloated with excess personnel. 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. Green Tree was best known, however, as the leading U.S. lender for mobile home purchases. On appeal, North American argues that the district court erred when it 1) submitted the unfair competition claim to the jury, 2) failed to grant judgment as a matter of law, 3) found that the compensatory award was supported by the evidence, and 4) allowed the punitive damage award to stand. Privacy Policy. 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. [6] SNI bought Consolidated National Life Insurance Co. in 1983. In 1999 Conseco secured a marketing partnership with the National Association for Stock Car Auto Racing (NASCAR) to become the 'Official Financial Services Provider of NASCAR' and entered the second phase of its marketing campaign. We will not set aside the jury verdict unless there is a complete absence of probative facts to support the verdict. The Conseco organization continued to add value to its holdings in the early 1990s and to achieve success with both CCM and CCP. Other ventures included outdoor and indoor theaters in Indiana and Ohio. Answer some questions about your specific lien and let us help you craft a letter to your creditor to resolve the issue. So, we purchased a mobile home in 1997 and it was financed through Greentree Financial. Zachar, 363 F.3d at 74 (quoting Davignon v. Clemmey, 322 F.3d 1, 13 (1st Cir. North American argued in its Rule 50(a) motion (styled "Motion for Directed Verdict") that Conseco "failed to offer sufficient proof that it sustained damages that were proximately caused by [North American's] use or misappropriation of trade secret documents." Witnesses for both parties testified that the information contained in these files was recognized by all Conseco employees as confidential, and therefore not to be disclosed. 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." 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. CNO Financial ranked 608 on the Fortune 1000 with 2014 revenues of $4.1 billion. You basically need to say the following to US Bank "You did our refinance back in 2003 and it was based on the existing trust deed with Greentree being paid in full and satisfied at closing, which it was paid in full and satisfied, but the company failed to record a reconveyance and that is why their trust deed still appears on our title. All rights reserved. Conseco is a Delaware financial services company with its principal place of business in Minnesota. Meridian Enters. Id. Conseco counters that while some of the information within these lead sheets can be harvested from these two sources, its proprietary computer program provides a unique depth of information that cannot be obtained from alternative sources and its loan files contain confidential customer information. 417.453(4) (1995). 1969)). 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. Mathias v. Accor Economy Lodging, Inc., 347 F.3d 672, 676 (7th Cir. 1996). The Court, however, went on to note that " [w]hile these ratios are not binding, they are instructive. Id. The company went on an acquisition binge, taking on a huge debt load that is now the basis of its plight. 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. 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. The auction for former Green Tree Financial in St. Paul, held Tuesday in Chicago, resulted in a Wednesday morning deal, according to news reports. Listen to free podcasts to get the info you need to solve business challenges! North American competes for individuals in the same market. 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. Importantly, the company had eliminated much of its debt burden by 1994. Because we have found adequate evidence of the existence of a trade secret, we need not address North American's argument. 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. 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. So, we purchased a mobile home in 1997 and it was financed through Greentree Financial. Conseco Finance became insolvent after it failed to make a $4.7 million payment that was due Dec. 4. In Conseco's case, a bunch of once-rich executives and big creditors took the hit. However, North American neither returned the stolen information nor discouraged its employees' use of Conseco's loan files and lead sheets. Id. Pony Comp., Inc. v. Equus Comp. Contact that person, or their law firm or trust company, and ask them to release the lien, Copy of original HUD-1 statement and Promissory Note, Letter from lender stating the loan is paid in full. These documents contained information concerning Conseco's internal operations, including monthly retail point income reports generated by each Conseco office, reports ranking the retail volume by branch, reports of retail loans funded by region, financial summaries of each branch, expense ratio reports, expense analysis reports, expense analysis retail volume variance reports, and reports on credit insurance protection. 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? Corp., 136 F.3d 276, 286 (2d Cir. Conseco withdrew from the deal after deciding that the asking price would cause too much accumulation of debt. Copyright 2003 by The National Underwriter Company in the serial publication. Upon emergence from Chapter 11, Conseco will be engaged exclusively in the insurance business, the company says. [9][10] Conseco's bankruptcy was the third-largest U.S. Chapter 11 filing at the time, after the bankruptcies of WorldCom Inc. and Enron. CCM provided a variety of financial and investment advisory services on a fee basis to both affiliated and nonaffiliated insurers. Although Podner claims he made these copies in order to help a fellow employee make the transition to loan originator, Conseco provided evidence that would allow a reasonable finder of fact to determine that a threat of misappropriation existed with regard to these specific files. If North American's net-profit theory had been conceived prior to trial, it would-and should-have asked for such an instruction. It turned out to be a bad deal for Conseco, and they were forced to sell to GE Capital in 2003. You need to work with the other parties that were involved in that transaction (the title company & US Bank), take initiative and reach out ot them. Shortly after the Green Tree deal, the company recruited General Electric wizard Gary C. Wendt as CEO, awarding him one of the lushest contracts in history, worth at least $75 million and gauranteeing him a retirement annuity of $1.5 million yearly. Additionally, Conseco produced evidence that Podner made copies of an unspecified number of customer loan files shortly before his resignation. It moved the balance of the operations from its largest purchase, Bankers National, to its ballooning Carmel headquarters. As such, the district court abuses its discretion in permitting a punitive damage award to stand when the award is so disproportionate to the factors relevant to the size of the award that it reveals "improper motives or a clear absence of the honest exercise of judgment." The partnership, CFN Investments, and GE Consumer Finance emerged as winning bidders in a 21-hour auction that ended about 5 a.m. CST Wednesday at the Chicago offices of Conseco's bankruptcy lawyers. Kientzy v. McDonnell Douglas Corp., 990 F.2d 1051, 1061 (8th Cir. You can reach us on phone number (480) 361-0034, fax number or email address . Conseco . Co. v. Campbell, 538 U.S. 408, 419, 123 S. Ct. 1513, 155 L. Ed. It also purchased Jefferson National Life Group in 1990 ($171 million) and Beneficial Standard Life in 1991 ($141 million). However, these were not the "specific grounds" on which North American argued below. 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. Though this was significantly lower than his 1997 pay of $119 million, it was enough for Hilbert to retain his reputation as one of the highest-paid CEOs in the nation. However, he speculated that as many as ten of these former Conseco customers could have switched their business to North American. For example, PNC charges a $25 fee if you close an account within 180 days of opening. Conseco also offers mutual funds and annuities. Upon emergence from Chapter . The grounds for the renewed motion under Rule 50(b) are limited to those asserted in the earlier Rule 50(a) motion. The purchase included Massachusetts General Life, Philadelphia Life, Lamar Life, and Wabash Life. In 1982, Hilbert acquired his first life insurance company, Executive Income Life Insurance Co., for $1.3 million. The original CCP partnership was changed to CCP Insurance, Inc., in 1993, and began acting as a holding company for its three subsidiaries. Walsh, 332 F.3d at 1158. Another cancer insurance provider, Capitol American Financial Corp., was purchased by Conseco for $696 million in March 1997. Specifically, North American argues that its conduct was not outrageous and did not justify the award, that there was no corporate wrongdoing by North American, and that the punitive damages were an improper remedy for its discovery abuses.10. However, the Court also explained that when compensatory damages are substantial, "perhaps [a punitive award] only equal to compensatory damages" may be appropriate. SNI bought Consolidated National Life Insurance Co. in 1983. North American competes for individuals in the same market. Also, some employees noted that Conseco had recently placed significant restraints on its area managers' loan authority. 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. 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. In arguing that the lead sheets are not "trade secrets," North American principally relies on Vigoro Indus., Inc. v. Cleveland Chem. Before MORRIS SHEPPARD ARNOLD, RICHARD S. ARNOLD, and SMITH, Circuit Judges. Rockport Pharm., Inc. v. Digital Simplistics, Inc., 53 F.3d 195, 197-98 (8th Cir. Workers, 34 F.3d 1148, 1155 (2d Cir. North American sought this information in an attempt to pursue Conseco's loan customers and business leads. Who bought Conseco Inc? In 2000, over the course of several months, a substantial number of Conseco's office managers and loan originators resigned, and many of Conseco's former employees took jobs working for North American. at 619, and we will not judge the credibility of the witnesses or weigh the evidence. However, if the account is opened for some specific purpose and the purpose still exists, banks may in such cases refuse to close the account. They may or may not get the point. 4 Can I withdraw all the money from my bank account? Conseco Finance Corp. will be split up and sold for a total of about $1 billion. Furthermore, Conseco takes reasonable steps to ensure the secrecy of these files. Another of North American's witnesses, Perry Schatz, testified only five percent of Conseco's leads result in a funded loan. 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. Conseco Sells Former Green Tree Finance Unit For $1 Billion, Life Health > Life Insurance > Term Insurance, March 09, 2003 at 07:00 PM Conseco claimed the acquisition was a perfect fit, as both companies served the same target market, but many industry observers were skeptical, and Conseco's stock took a plunge. at 416-417, 123 S. Ct. 1513 (2003). Conseco renamed Green Tree Conseco Finance Corp. in 1999 and moved toward the next century intent on strengthening operations. The company also made loans of nearly $550 million to its executives and directors. Keep in mind, just because a company services a loan today doesnt mean theyll continue to do so long term. Its portfolio includes traditional life insurance, annuities and supplemental health coverage. Id. In 1997, total revenues reached $6.85 billion, a significant increase over the previous year. St. James Press, 2000. However, because of the significant variance between the large actual damage award and the resulting punitive award, we must consider the nature of North American's conduct and the harm suffered solely by Conseco. 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. The lead sheets are a product of a specialized-and apparently quite effective-computer program that was uniquely Conseco's. Galdieri-Ambrosini, 136 F.3d at 287. In early August 2000, Conseco sent a letter notifying North American's legal department of the misconduct by Scott Bristol and his loan originators and asking that it stop. We will leave the question of whether tortious interference remains an independent claim to another court and another day. Williams v. ConAgra Poultry Company, (slip opinion August 6, 2004). Podner testified that the number was substantial. To help achieve this objective, Conseco formed a new limited partnership in early 1994, Conseco Capital Partners II, L.P. CCP II included 36 limited partners who had a combined investment potential of $5 billion to $7 billion. Newsletters: Get local news delivered directly to you, Chemic alum among NU's top hitters, outfielders. The business has over $3.4 billion of statutory reserves. You wouldn't have funded the loan in 2003 if Greentree wasn't paid in full, a new loan from Greentree wasn't put on title after your refinance, so it's logical the trust deed on title is the one that was paid off." Despite Hilbert's insistence that Conseco's success reflected a commitment to sound business practices, skepticism continued. It purchased Bankers National Life Insurance Company for $118 million, respectively. 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. GE Capital was sold for parts in 2013, and your mortgage was probably bought by GM Credit (now Ally Bank) or Wells Fargo. 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. Is there a fee for closing a Chase bank account? Conseco Finance Corp - Company Profile and News - Bloomberg Markets Bloomberg Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately. 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. Conseco was investing tens of millions of dollars into new entertainment-related projects late in 1993 and 1994, including some riverboat gambling proposals. However, when passing on a district court's determinations concerning the constitutionality of the punitive award, we use a de novo standard of review. Are there fees for closing a bank account? In viewing this evidence in the light most favorable to the verdict, we hold there is ample evidence supporting each element of an unfair competition claim. 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." Copyright (c) 2022 Company-Histories.com. 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. Entering 1992, the company was valued at over $800 million. Walsh, 332 F.3d at 1158 (quoting Rockport Pharm., Inc. v. Digital Simplistics, Inc., 53 F.3d 195, 197 (8th Cir. 2 Who bought out Conseco Finance Servicing Corp? 2001). FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Phone: Web: Category: Banks Conseco Finance ripoff business should not be allowed to go bankrupt Rapid City South Dakota *Consumer Comment: Conseco Finance Billing policies ..I have decided not to pay them another cent Business Rating: Rate this business Zachar v. Lee, 363 F.3d 70, 72 (1st. Enjoy reading our tips and recommendations. The parties proceeded to a trial on the merits for these issues. Create an alert to follow a developing story, keep current on a competitor, or monitor industry news. During this same period, Conseco's mortgage service division downsized. Co., 333 F. Supp. The second, Kevin Podner, a former area manager from Conseco's office in Springfield, Illinois, testified that shortly before his resignation from Conseco, he made a copy of a substantial number of loan applications on which he had worked during his time with Conseco. All Rights Reserved. When Conseco went hunting for acquisition candidates, it looked for organizations with sound asset portfolios. The Carmel, Ind.-based financial services company said it has retained Wall Street investment firm Lehman Brothers to identify buyers for the Conseco Financial Corp., formally Green Tree. Walsh, 332 F.3d at 1158 (quoting Cruz v. Local Union No. Conseco Finance (Financial Services) is a financial advisory firm in Tempe, Arizona. Here are the three easy steps that you need to take: And thats it! Under this standard, the district court will only be reversed when "its ruling is obviously insupportable." At the preliminary hearing, Bristol testified that he and the other Conseco employees were put on the payroll of North American on June 30, 2000, for "benefits purposes," and that they did not work for both companies at the same time. However, we cannot allow the punitive damage award to stand at $18 million, and remit the award to $7 million. One of the most important aspects of this world is the emergence of man as a creator. Companies displayed may pay us to be Authorized or when you click a link, call a number or fill a form on our site. [11] In the process of reorganization, GreenTree was divested and thereafter Conseco solely focused on the insurance industry. Conseco hopes to emerge as an insurance-only business. [13] They also owns 40/86 Advisors, an investment management company and Washington National Insurance Company. Webb Agency, Inc. v. Commercial Standard Ins. If you have any questions or clarifications, you can also reach out to Conseco Finance Servicing Corp directly at: The challenge here is that your requests can be ignored, forgotten, or purposely mishandled. Odds are they may even be the same title company that US Bank is using for the new proposed refinance as well. Phone: 800-643-0202 Web: Category: Mortgage Companies Conseco Finance / GreenTree Deceptive practice / stole my home St. Paul Minnesota *Consumer Comment: Sold your house to Conseco? 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. 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. After the jury returned a verdict against North American on each of the claims, North American filed several post-trial motions, primarily relating to the damage awards. The bank should mail you a check for the remaining balance in your account. And, one of North American's senior managers, Carrie Hiatt, knowingly authorized Rick Lasek to work in North American's Des Moines office while Lasek was still employed by Conseco, There was evidence of wrongdoing in several North American locations including: St. Louis, Missouri; Collinsville, Illinois; Springfield, Illinois; Wichita, Kansas; Davenport, Iowa; Colorado Springs, Colorado; and Overland Park, Kansas, North American's senior manager in charge of the company's expansion into the subprime market, Ken Keeler, received compensation based on loan production. However, the jury (and the district court) rejected this theory, opting for an alternative explanation-North American's desire to expand into the subprime market, at any cost.14 North American has not shown that the jury's assessment of the facts was unreasonable. Am., 408 F.2d 500, 503 (8th Cir. Who started Conseco insurance? It's not a permanent solution but it solves it for that specific transaction.