The announcement of the resignation of David Colby as CFO of the nations largest insurer, WellPoint, on May 30 left a lot of questions. Colby, as the No. 2 officer at WellPoint, had been seen as a likely successor to Larry Glasscock, WellPoints chairman, president and CEO. The day after WellPoint named Angela Braly as the next CEO in late February, Colby was given the additional title of vice chairman and more stock options. Colby, who had worked for Columbia/HCA in its acquisition heyday, resigned just a day before Braly took over, but the company said it was for a nonbusiness violation of the firms code of conduct.
A subpoena may have spilled the beans, as Colbys private life began to leak into the headlines. WellPoint received the subpoena seeking e-mails and text messages from Colby. It was filed by an attorney for Rita DiCarlo, who on May 25 filed a lawsuit against Colby over possession of his $4.4 million home in Thousand Oaks, Calif. She claims the home, which had belonged to Colbys wife, had been promised to her by Colby, whom she said was her former fiance.
Meanwhile, Colby had been in divorce proceedings in Ventura County, Calif., since February 2004 as he and his wife, Karenn Colby, seek to reach an agreement on how to divide their assets.
And Angela Doan, a woman who lives with David Colby in Indianapolis and uses the surname Colby, told the Indianapolis Star that DiCarlo and Colby had never been engaged but she and Colby are.
WellPoint spokeswoman Shannon Troughton declines to say whether Colbys resignation was linked to the lawsuit and subpoena. Colby was unavailable for comment.