Conseco CFO was fired
Company's CEO says CFO didn't resign, but was fired because he was not up to the job.
March 7, 2002: 3:54 p.m. ET
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NEW YORK (CNN/Money) - Insurer Conseco Inc. said Thursday its chief financial officer was fired and did not turn in a resignation, as the company said on Wednesday.
In a letter to shareholders, Conseco CEO Gary C. Wendt said former CFO Chuck Chokel was terminated because he was not up to the job.
Conseco (CNC: down $0.17 to $3.58, Research, Estimates) said in a press release on Wednesday Chokel had resigned to pursue other interests.
Wendt said he did not want to deal with Chokel's leaving in a "hurtful way" and thought the meaning of his departure would be clear.
He said he decided to clarify Chokel's firing to combat market rumor and misinformation, calling stories he has heard "irrational and even nutty."
Conseco stock fell sharply in early trading as a Wall Street analyst told investors to sell the shares after Chokel's unexpected departure.
"A relatively new finance chief leaving a troubled company raises serious questions," said Merrill Lynch analyst Edward Spehar in a research note early on Thursday. He cut his investment rating on the firm to "reduce/sell" from "neutral" -- a rare move on Wall Street. He joins Salomon Smith Barney analyst Colin Devine, a long-time bear on Conseco, who slapped a sell rating on the company in January.
Also on Wednesday credit rating agency Moody's warned it would slash Conseco's "junk" credit ratings two or more notches unless it showed it can generate enough cash to pay its debts.
The Carmel, Ind.-based company, which is straining under $6 billion in debt, has until March 31 to present a cash plan to PriceWaterhouseCoopers so the auditor may issue an "unqualified" opinion on its 2001 financial statements, according to Moody's. 
-- from staff and wire reports
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