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.