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Women Sue Former Managed Care CFO

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Two women who say they were misled are taking a former health insurance executive to court.

The women, Sarah Waugh and Rita DiCarlo, have filed suits alleging that David Colby, who resigned in May from the post of chief financial officer of WellPoint Inc., Indianapolis, had what they thought were conventional relationships with them while maintaining relationships with many other women in the United States and Europe.

One of the women, Sarah Waugh, a former WellPoint corporate communications employee, has sued Colby and WellPoint in state court in Los Angeles.

Colby carried on simultaneous affairs with more than 15 women, including Waugh’s younger sister, Waugh alleges in court papers.

Waugh and Colby met in 2004, when Waugh was working in a WellPoint Health Networks Inc. office near Los Angeles, shortly after the company merged with Anthem Inc., Indianapolis.

At one point, Colby spray-painted Waugh’s car when she tried to break off a relationship with him, Waugh alleges.

DiCarlo, a registered nurse, has filed her suit in a state court in Ventura County, Calif.

DiCarlo is seeking ownership of a house Colby owns near Los Angeles. DiCarlo says she has lived there since January 2005.

Inside Edition, the TV news magazine, recently ran an interview with DiCarlo. DiCarlo said she believes Colby carried on affairs with 50 other women while she was seeing him.

Colby oversaw dozens of acquisitions while he was at WellPoint, helping it become one of the nation’s largest health insurers. For 3 straight years, from 2004 through 2006, he was named best CFO for the managed care sector by Institutional Investor magazine.

When Colby left WellPoint, WellPoint said he had violated the company’s code of conduct by engaging in unspecified activities “of a nonbusiness nature.”