Carr, Marcian of First Executive to Be Re-Subpoenaed

The head of the Assembly Finance and Insurance Committee has vowed to re-subpoena next week Fred Carr and Doug Marcian, two top officers of Los Angeles-based Executive Life Insurance Co., after their legal challenge to the committee’s original summons.

However, the committee is unsure whether it will make a second attempt to get Michael Milken, the indicted junk bond trader, to appear as originally requested. Milken has said he intends to invoke his Constitutional rights against self incrimination and not answer any questions.

Carr and Marcian will apparently comply with the new subpoena.

“Of course, if a (legal) subpoena is issued, we will comply,” said the company’s general counsel, William Adams.

Milken, Carr and Marcian were subpoenaed last month to testify at insurance hearings involving the health of Executive Life, which insures the lives and pensions of at least 100,000 Californians. Carr is chairman and chief executive of First Executive Corp., Executive Life’s parent company, and Marcian is the company’s chief investment officer.

Executive is one of the nation’s biggest investors in the high-risk, high-yield junk bonds once promoted by Milken. The insurance committee is investigating whether junk bonds are too risky for insurance companies and whether California needs a guarantee fund for life insurance policyholders. The state is among only six that do not formally protect holders of life insurance policies from losses, said Committee Chairman Patrick Johnston.

Carr’s attorneys objected to the Assembly’s original subpoena on technical grounds and asked why the Assembly didn’t invite the executives to attend before sending the subpoena.

The committee then “invited” Carr and Marcian, who declined, saying they feared that adverse publicity generated by such a hearing would harm the company.

But Johnston considers Carr and Marcian vital witnesses, so the drama continues.