CBL & Associates updates federal investigation
CHATTANOOGA, Tenn. (WDEF) – CBL & Associates Properties issued a statement on Monday about the federal investigation into the Chattanooga company.
A Wall Street Journal report claimed an ex-employee alleged that CBL mislead banks on their loan procedures.
At the time, company officials said now agency had contacted them about any such investigation.
Now they say that on Friday, they finally got word of what is going on.
Here is the company statement:
“For more than two weeks, we have been using every available resource to determine whether there is an investigation by a governmental agency underway with respect to our company’s loan procedures as alleged in a media report. For the first time, on Friday, June 10, 2016, as a result of our efforts, we learned in a discussion with the Securities and Exchange Commission (SEC) that it is conducting an investigation limited to four specific non-recourse secured loans originated in 2011 and 2012. Specifically, the purpose of this review is to ensure the information provided to lenders regarding lease status reports, revenues and expected revenues, did not materially vary from the company’s financial statements. The agency welcomed our proactive outreach, as well as our commitment to commission an independent review of our procedures with respect to those loans. Ernst & Young has been engaged to conduct a swift and thorough investigation. The findings from that independent investigation will be provided to the SEC upon completion. We are confident that this will bring a positive resolution to this matter.
“As we’ve stated previously, at all times, our company operates with the utmost integrity and holds itself to the highest ethical standards. We have stringent policies and procedures in place to ensure all of our accounting and financial processes and reporting comply with applicable laws, rules and regulations.”