Regulators Readying Conseco VA Action

April 15, 2004 ( - New York Attorney General Eliot Spitzer and the U.S. Securities and Exchange Commission (SEC) may take enforcement action against Conseco Inc for allegedly allowing improper mutual fund trading in the variable annuities it sold.

Word of possible enforcement action comes from Consecospokesman Jim Rosensteele.   If Conseco were charged with any wrongdoing, it would be the first insurance company caught up in the expanding mutual fund trading investigation, according to a Hartford Courant report.

The regulators, extending their probe of short-term trading to funds included in annuities, also are examining insurers such as Prudential Financial Inc. and Lincoln National Corp. The probe would add to a National Association of Securities Dealers crackdown of sales abuses in the $1 trillion variable annuities industry (See  NASD Eyes Northwestern Mutual Variable Life Policies ).

Rosensteele denies Conseco violated any laws .