First Horizon National Corp. announced on Wednesday that two of its subsidiaries and a company executive received Wells notices from the SEC. The Daily News reports that the two subsidiaries are First Tennessee National Bank Association and FTN Financial. The president of FTN Financial, Frank Gusmus, also received a Wells notice.
According to the Daily News, the notices concern a securities transaction with Sentinel Management Group Inc. Sentinel is a former client of FTN Financial that filed for bankruptcy in 2007. The Daily News reports that the notice addresses the 2006 year-end securities repurchase transaction between FTN and Sentinel. FHN stated that the SEC staff “may recommend enforcement actions for aiding and abetting Sentinel in violations of securities laws.”