Georgia Insurance Commissioner John Oxendine has ordered acriminal investigation into failed Southeastern U.S. Insurance andits former CEO, comparing the company's business practices to thoseof Enron.

"After reviewing financial transactions made by the company, Ifind no other recourse but to open a criminal investigation intothe actions of [Former CEO] M. Clark Fain, III," Oxendine said, ina release. "I can only compare the bookkeeping methods of thecompany to those of Enron."

Oxendine was named liquidator of Southeastern in late October2009, when Fulton County Superior Court Judge Thomas R. Campbell,Jr., ordered the company into liquidation. Under the consent order,Oxendine's office was authorized to sell off the company's assetsto pay claims.

However, department analysts became suspicious of the companywhen they learned that it had engaged in a questionable transactionregarding a hunting club that it owned. Oxendine said thedepartment also discovered that the company, which hadapproximately 209 workers' compensation policyholders at the timeof liquidation, was overstating assets while significantlyunderstating liabilities.

"Indications are that this is a case of corporate greed,"Oxendine said. "The questionable accounting engaged in by thecompany ultimately has a huge negative impact on the lives ofdecent, innocent citizens."

A copy of the full release is available at www.gainsurance.org.