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About this Settlement

On August 9, 2004, the Securities and Exchange Commission ("SEC") entered an Order implementing the settlement of administrative and cease-and-desist proceedings against subsidiaries of public insurance company Conseco, Inc.: (now named CNO Financial Group, Inc.): CIHC, Inc., Conseco Services, LLC, and Conseco Equity Sales, Inc. (together, "Respondents" or "Conseco") in this matter ("Order"). In the Matter of CIHC, Inc., Conseco Services, LLC, and Conseco Equity Sales, Inc., Admin. Proc. File No. 3-11578, Securities Act of 1933 Release No. 8455 (August 9, 2004).

In the Order, the SEC authorized the establishment of a Fair Fund pursuant to the Sarbanes-Oxley Act of 2002, comprised of $15,000,000 in disgorgement and penalties paid by Respondents, for distribution to investors harmed by certain market timing trading through Conseco variable annuity products. The Order provided that the Fair Fund was to be distributed pursuant to a distribution plan developed by an Independent Distribution Consultant ("IDC"). The Respondents retained Kormendi \ Gardner Partners, Dr. Roger Kormendi, and Mr. Cyrus Gardner as the IDC, who have developed a proposed distribution plan (the "Plan of Distribution") in consultation with the SEC Staff and Respondents. The Plan of Distribution was approved by the SEC by Order dated February 26, 2010.

For more information regarding the Plan of Distribution, click here.

Eligible Funds

The following variable annuity funds were substantially affected during the December 1, 1999 to October 22, 2002 time period:

  • Alger American Small Capitalization Fund
  • American Century VP International Fund
  • Dreyfus International Value Portfolio
  • Federated International Equity Fund II
  • Janus Aspen Series Worldwide Growth Portfolio
  • Pioneer Europe
  • Van Eck Worldwide Bond Fund
  • Van Eck Worldwide Emerging Markets Fund
  • Van Eck Worldwide Hard Assets Fund
  • Van Eck Worldwide Real Estate Fund

Settlement Update

Replacement checks issued July 26, 2022.


Please do not contact CIHC, Inc., Conseco Services, LLC, Conseco Equity Sales, Inc., the IDC or the SEC about this settlement. Any and all callers will be directed to this website. If you have questions, please refer to the FAQs and the other information posted here.

This site is not operated by CIHC, Inc., Conseco Services, LLC, or Conseco Equity Sales, Inc. The settlement and website are supervised by the SEC and administered by a claims administration firm.

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