Former Conseco President and CEO Thomas J. Kilian borrowed $25 million to buy company stock but never repaid the company, according to the Associated Press. Kilian is one of 11 executives charged with borrowing more than $670 million in order to buy company stock.
Conseco claimed that Kilian owed the company $26.8 million, which includes the $25 million for a company-backed loan, plus interest.
Conseco is looking for money to repay creditors following its Chapter 11 bankruptcy settlement. Nine of the other executives are contesting the claims against them, and one, the companys former Chief Financial Officer Rollin Dick, has filed a motion to delay his deposition.
Dicks lawyers argue that complications could arise if Dick answers questions in the civil case before a criminal investigation against him and former treasurer James Adams is completed. The Securities and Exchange Commission has also launched a civil investigation of the pair.
Kilian is now president and CEO of Ceres Group, another insurance group that has also grappled with financial troubles.