Tangled Web for Ex-WellPoint CFO

Asked to resign for violating Wellpoint's code of conduct, the former CFO is reportedly involved in a divorce, a lawsuit, and an engagement with three different women.

A lawsuit reported by several media outlets may shed more light on how the former CFO of WellPoint Inc. may have violated the company’s code of conduct, which led the company to ask for his resignation last week.

David Colby, who left the managed-care company last week, has been sued by a California woman seeking possession of a multi-million house she said he had promised and failed to give her, according to The Wall Street Journal.

The Associated Press reports that the company itself received a subpoena related to the lawsuit seeking e-mails and text messages from Colby, among other things.

The wire service points out that the house was assessed at $2.5 million, but is located in Thousand Oaks, Calif., where homes have sold for more than $5 million. The lawsuit on behalf of Rita DiCarlo claims Colby agreed verbally and in writing in March 2005 to transfer the 7,500-aquare-foot home to DiCarlo, according to the AP.

“In spite of repeated promises that defendant would transfer the property . . . defendant failed and refused, and continues to fail and refuse, to do so,” the lawsuit reportedly states.

Meanwhile, the Indianapolis Star reports that Colby has a divorce pending with his California wife, and a third woman who lives with him in Indianapolis told the paper she plans to marry the former finance executive.

According to The Star, DiCarlo’s attorney said Colby has introduced his client to WellPoint investors as his wife. It also reported a paid advertisement announcing the engagement of DiCarlo and Colby was placed in The Indianapolis Star on Feb. 19, 2006.

However, Colby’s current companion, Angela Doan, told the paper the announcement was a hoax. “It was run without his knowledge and certainly without his blessing,” Doan reportedly told the paper, which said Doan uses the surname Colby. “He’s never dated her, he’s never been engaged to her, so certainly he would have never said OK to running an engagement announcement.”

Doan also told the paper DiCarlo frequently sends her e-mails and instant messages and makes phone calls that involve false allegations against Colby.

According to published reports, Colby lived in California until California-based WellPoint merged with Indianapolis-based Anthem in 2004. The newly combined company is based in Indianapolis and took the WellPoint name. WellPoint spokeswoman Shannon Troughton told the AP the company’s corporate office in Indianapolis received a copy of the subpoena.

It is still not exactly clear why WellPoint asked Colby to leave. WellPoint spokesman Jim Kappel told the Indianapolis paper, “Given the non-business nature of the violations in the investigation, the company is not making any further comments on the circumstances resulting in the resignation.”

“This resignation is in no way related to the company’s performance or financial condition,” WellPoint chairman, president, and chief executive officer Larry Glasscock noted in a conference call last Thursday.

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