UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934

Release No. 34-80452 / April 13, 2017

ADMINISTRATIVE PROCEEDING

File No. 3-11578

In the Matter of

CIHC, INC., CONSECO SERVICES, 

LLC, and CONSECO EQUITY SALES, 

INC.,

Respondents.

ORDER DIRECTING DISBURSEMENT 

OF FAIR FUND

On January 19, 2010, the United States Securities and Exchange Commission 

(“Commission”) published an Amended Notice of Proposed Plan of Distribution and 

Opportunity for Comment (“Notice”) pursuant to Rule 1103 of the Commission’s Rules of Fair 

Fund and Disgorgement Plans, 17 C.F.R. § 201.1103.

1

The Notice advised all interested parties 

that they could obtain a copy of the Distribution Plan from the Commission’s public website or 

by submitting a written request to George S. Canellos, Regional Director, United States 

Securities and Exchange Commission, 3 World Financial Center, Room 400, New York, NY 

10281. The Notice also advised that all persons desiring to comment on the Distribution Plan 

had to submit their comments, in writing, within 30 days of the date of the Notice. No comments 

were received in response to the Notice. On February 26, 2010, the Commission issued an Order 

Approving Plan, Appointing a Fund Administrator, and Waiving Bond.2

The Distribution Plan provides for the distribution of the disgorgement and civil penalties 

paid by the Respondents, plus any accumulated interest earned, less a reserve for taxes and any 

amounts determined to be payable upon appeal, to investors according to the methodology set 

forth in the Distribution Plan. The Independent Distribution Consultant (“IDC”) has conducted 

three rounds of distributions to date.

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The IDC has submitted to the Commission staff a validated 

payment file for the fourth round of distribution totaling $903,956.39 to 14,868 investors. 

Because the Fair Fund escrow account balance at U.S. Bank, N.A. ($1,500,363.83) exceeds the 

 

1

Exchange Act Rel. No. 61209A (Jan. 19, 2010).

2

Exchange Act Rel. No. 61601 (Feb. 26, 2010).

3

 In the first round, $4,263,506.27, in the second round, $2,864,027.70, and in the third round, $2,524,880.83 was

distributed in accordance with the Distribution Plan. See Exchange Act Release Nos. 72999 (Sept. 4, 2014), 74522 

(Mar. 17, 2015), and 78370 (July 20, 2016), respectively.
2

sum of the distribution for this round ($903,956.39) and the value of outstanding checks 

($54,278.60), no transfer of funds from the Fair Fund to U.S. Bank, N.A. is needed for the fourth 

round of distribution. Commission staff has reviewed the validated payment file and requests 

that, pursuant to Rule 1101(b)(6) of the Commission’s Rules on Fair Fund and Disgorgement 

Plans,4the Commission authorize the Fund Administrator to disburse $903,956.39 from the Fair 

Fund to the 14,868 investors identified by the IDC.

Accordingly, it is ORDERED that the Fund Administrator shall distribute $903,956.39

from the funds held at U.S. Bank, N.A. to the 14,868 investors identified by the IDC, as provided 

for in the Distribution Plan.

For the Commission, by its Secretary, pursuant to delegated authority.

Brent J. Fields

Secretary

 

4

 17 C.F.R. § 201.1101(b)6.