Jefferson National Reports Market-Timing Inquiry

The company further states that on March 12, it received a Wells notice from the SEC stating that the agency is considering filing a civil injunction action in connection with alleged violations of various securities laws. Jefferson National says it was told orally that "the action was based on alleged market-timing activity that was processed through variable annuity contracts issued by Jefferson National."

The company further states that the New York attorney general has orally told management that it is considering a similar action.

Jefferson National says it responded to the Wells notice March 23, presenting its views on why no action was needed.

Jefferson National previously was a unit of Conseco Inc., Carmel, Ind. It was sold to Inviva in October 2002.

In an interview, a spokeswoman for Inviva said the company is cooperating fully with the SEC and regulators to reach a resolution but cannot comment on the specifics of the inquiry.