The Wall Street Journal said today that federal law enforcement officials are investigating CBL & Associates Properties Inc. for alleged accounting fraud.
But the Chattanooga-based real estate firm said today it has not been contacted by the FBI or the Securities and Exchange Commission and CBL officials said they “strongly deny” the allegations in the newspaper report.
The Journal quoted sources who said the FBI and SEC are focusing their examination on whether CBL officials falsified information on financial statements to banks when applying for financing arrangements.
The Journal, which reported the investigation today, previously disclosed trades with the Chattanooga company that proved valuable for U.S. Sen. Bob Corker, R-Tenn., who once worked at CBL and is a friend of several top CBL officials.
In a statement today, CBL President Stephen Lebovitz also said allegations of improper accounting are “completely baseless” and “the company operates with the utmost integrity and holds itself to the highest ethical standards.”