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Monday, October 02, 2006

Ind. Decisions - U.S. Supreme Court refuses to hear Hilbert appeal

The AP is reporting:

CARMEL, Ind. - The U.S. Supreme Court refused to hear Conseco Inc. founder Stephen Hilbert's appeal of a judge's order that he repay the company more than $80 million in stock loans.

The high court's decision ends the last appeal available to Hilbert. Conseco attorneys have said they would move quickly once appeals were exhausted to seize and sell Hilbert's assets to collect millions of dollars the insurer claims Hilbert fraudulently transferred to his wife.

Proceeds from a 2005 auction of Hilbert's household items have been held in escrow until the legal dispute was settled. The company also has tried unsuccessfully to sell Hilbert's 23,000-square-foot Carmel mansion.

The Indiana Supreme Court earlier had denied the same request, and Hilbert's attorneys appealed to the U.S. high court. [see 3/20/06 ILB entry]

Conseco attorney Reed Oslan told The Associated Press Monday that the company was pleased with the high court's refusal to hear Hilbert's appeal and that the company would "vigorously pursue" collection of the judgment.

Hilbert attorney Phillip Fowler said he would release a comment later Monday.

The Indiana Court of Appeals in 2004 unanimously upheld a decision by Hamilton County Judge Judith S. Proffitt ordering Hilbert to repay the money. The debt stems from company-backed loans Hilbert received in the late-1990s to buy Conseco stock, which became worthless during its bankruptcy reorganization in 2003.

Posted by Marcia Oddi on October 2, 2006 02:25 PM
Posted to Ind. Sup.Ct. Decisions