Orshe

WellPoint’s former CFO David Colby (pictured) left the health-insurance giant two years ago in disgrace, but his industry expertise appears to remain in demand. On an earnings conference call with analysts yesterday, Health Net. Chief Executive Jay Gellert confirmed that he has tapped Colby for advice on Health Net’s turnaround.

Before his ouster, Colby was WellPoint’s public face on Wall Street and one of the industry’s most sought-after finance chiefs. But the company asked him to resign abruptly in May 2007 because of an unspecified code-of-conduct violation. Colby was soon hit by several lawsuits alleging multiple romantic entanglements with women across the country, including one with a former employee.

Health Net, based in Woodland Hills, Calif., reshuffled its management last year and launched a strategic review after a series of poor earnings results.

“Health Net has entered into a consulting agreement with David Colby, under which he has agreed to advise the CEO and CFO on issues related to the strategic review and in streamlining financial processes and organization,” a Health Net spokeswoman said in a statement. “Mr. Colby has a proven track record of enhancing relationships with the investment community and maximizing shareholder returns.”

The company declined to elaborate on how long Colby would work as an outside consultant. Colby couldn’t be reached to comment.

Here is the original post:
Health Net Taps WellPoint’s Ousted CFO as Consultant