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CBL says investigation clears it of wrongdoing


A Securities Exchange Commission investigation into some loans applied for by CBL & Associates is unfounded, the company maintained in announcing the results of an independent investigation.

On June 10, the SEC informed the Chattanooga, Tennessee-based real estate company that it was looking into potentially fraudulent financial reporting contained in applications for four non-recourse loans in 2011 and 2012. Invited by the agency to launch its own investigation, CBL engaged Ernst & Young to conduct one and released the results today.

A statement attributed to the company stated that the Ernst & Young report “conclusively confirms what we have asserted all along: The allegations regarding our procedures with respect to the four loans were completely false and unwarranted. Specifically, the investigation confirmed that information concerning leases and revenue … and the accounting for the leases for properties securing the loans were accurate in all material respects.”

An SEC spokesperson contacted by Chain Store Age declined to comment.

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