Metavante caps robust year; Central States Mortgage’s parent company sues founders
Metavante caps robust year
In its first full year as a separate public company, Brown Deer-based Metavante Technologies Inc. recently reported net income of $147.4 million, or $1.23 per share.
The company’s net income for the fourth quarter was $40.4 million, 34 cents per share.
Metavante reported revenue growth of 7 percent for the year and 6 percent for the quarter.
Metavante is the parent company of Metavante Corp., which delivers banking and payments technologies to more than 8,000 financial services firms and businesses worldwide.
Commenting on the results, Frank Martire, chairman and chief executive officer, said, "I am pleased that in our first full year as a separate public company we delivered consistently solid results that exceeded the expectations we set at the beginning of 2008. The powerful combination of our robust business model, our loyal and diverse client base, and our strong Metavante team allowed us to exceed our plans despite a difficult and dynamic business environment."
The company expects organic revenue growth in 2009 of 3 to 4 percent and growth of 12 percent to 16 percent in diluted earnings per share.
"We enter 2009 with clear objectives and well prepared for the persistent challenges and increased uncertainty that we will face," Martire said. "We remain focused on optimizing our performance by capturing new business, driving cost productivity, and building contingency plans that allow us to adapt to different rates of growth. And we remain dedicated to helping our clients navigate this environment by meeting their current business needs, providing consistent service levels, and developing technologies that will make them more efficient and more competitive in the future."
Central States Mortgage’s parent company sues founders
CSMC Inc., the Wauwatosa-based parent company of Central States Mortgage, has filed a lawsuit against its founding shareholders, with allegations of racketeering and wire fraud activities that cost the company more than $15 million in losses.
In a civil case filed in Milwaukee Circuit Court, CSMC alleged that former chief executive officer Richard Jungen, his wife Elaine Jungen, who also served as president and secretary, former chief financial officer Jerome Poehnelt, former senior vice president of sales Kevin Dwyer, and former vice president for production Charles Miller, intentionally created and took part in a fraudulent scheme.
The complaint alleges that the Jungens, Poehnelt, Dwyer and Miller founded Interim Funding LLC in 1997. Interim is an end purchaser of mortgage loans that were originated by CSMC. According to the suit, the defendants, through their controlling interests in both organizations, caused CSMC to purchase delinquent or foreclosed mortgages. Many of the distressed or foreclosed mortgages were then repurchased by CSMC because of a funding scheme created by the defendants, the case states.
Richard Jungen was fired from CSMC last July 31, while Elaine Jungen, Dwyer and Miller were fired on Nov. 7. Poehnelt was fired on Sept. 15.
CSMC told BizTimes Milwaukee last summer that Richard Jungen had retired from his position as CEO.
In the case, which has been assigned to Judge Jean Di Motto, CSMC seeks more than $15 million in damages, plus an additional amount in attorney fees and punitive damages.
Central States Mortgage is owned by 25 credit unions and provides mortgages to those credit unions.