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St. Paul Cos. Insures Future

New finance chief is named to St. Paul Co.'s reinsurance division. Plus: Documentum brings back former CFO; Sourcefire grabs venture capital and a ...
Lisa YoonJuly 25, 2002

>> St Paul Cos. sees no risk in naming William Robbie CFO of its St. Paul Re reinsurance division … Robbie joins company from XL Capital Ltd., where he was EVP of financial services at its Stamford, Conn., office … In addition, Michael Lombardozzi was named general counsel … Robbie and Lombardozzi will also be named to their respective posts upon completion of spin-off of Platinum Underwriters Holdings Ltd … Platinum’s initial public offering in registration with SEC, but has been “temporarily postponed in light of current market conditions,” according to St. Paul …

Robbie takes over CFO duties from David Grefe, who was also chief administrative officer … Grefe is to take on other, unspecified assignments at St. Paul … Allocation of Grefe’s CAO duties still being worked out, the spokesman said …

Earlier this week, St. Paul reported quarterly loss, compared with a year-ago profit, because of $380 million settlement with building-products company Western MacArthur over asbestos suit … St. Paul, Minn.-based insurer reported a net loss of $223 million, compared with earnings of $104.1 million, a year ago …

Separately, company also said it hasn’t decided whether to start booking stock options as expenses … Though Coca-Cola Co. and Washington Post Co. have led recent charge of companies to do so, insurance companies worry the move could put them at competitive disadvantage unless rival companies adopt same policy at once …

>> Documentum Inc., whose software allows companies to manage and archive Web sites, said Mark Garrett has clicked on the back button and returned to company, resuming CFO post … Garrett was most recently CFO at Marimba Inc., and before that served as CFO and VP of finance for two dot-com start-ups … He replaces Bob Corey, who announced in May he was retiring …

Earlier this week, Documnetum reported narrower net loss and raised its outlook for year …

>> Marc Rubin will police the books at network security company Sourcefire Inc. as CFO, and manage company’s recent score of $7.55 million in venture capital … Rubin was previously VP, CFO, and chief accounting officer at Sequoia Software, which makes XML-based portal solutions … At Sequoia he led finance, accounting, human resources, recruiting, MIS, and facilities teams as company’s workforce expanded from eight to 250 employees. Rubin successfully guided Sequoia through three rounds of private financing worth $45 million, priming the company for its 2000 IPO and 2001 acquisition by Citrix Systems … Before Sequoia, Rubin worked in finance and accounting at Black & Decker and London Fog

>> Former Adelphia Communication Corp. CFO Timothy Rigas was among three family members and five former executives busted by Feds Wednesday on fraud charges … CEO and paterfamilias John Rigas, Tim, and former EVP of operations Michael were arrested in Manhattan for “looting” cable company in “one of the most extensive financial frauds ever to take place at a public company.” In Coudersport, Penn., former VP of finance James Brown, and Michael Mulcahey, former director of internal reporting of treasury functions, were also arrested …

Complaint charges former execs with conspiracy to commit securities, wire, and bank fraud … Allegedly, defendants used company money for everything from personal loans to constructing a $13 million golf course on John Rigas’s property, to shuttling family members back and forth from a safari vacation in Africa … In addition, government says Rigas family used more than $252 million in Adelphia funds to pay margin calls against loans family had received … If convicted, each could spend more than 30 years in clink, and pay millions in fines.