M&A

Sallie Mae Reveals Post-Acquisition SEC Inquiry

Education-loan provider is also looking into the new unit's accounting practices.
Stephen TaubFebruary 2, 2004

SLM Corp. — the provider of education loans better known as Sallie Mae — announced that it is responding to an inquiry from the Securities and Exchange Commission concerning certain year-end accounting entries made by employees of one of the company’s recently acquired subsidiaries.

Sallie Mae added that while the amounts in question appear to be less than $100,000, the company and its audit committee take these kinds of matters very seriously and are taking all appropriate actions.

In November, Sallie Mae bought the Academic Management Services Corp. unit of health and life insurer UICI.

In July, UICI announced the discovery of a shortfall in the collateral supporting two of the securitized student-loan financing facilities entered into by three special financing subsidiaries of AMS. In addition, UCCI put the former president of AMS on leave and relieved him of all responsibilities pending the completion of an investigation.

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