Chattanooga-based CBL & Associates Properties, Inc. on Thursday called reports about the firm in the Wall Street Journal "baseless allegations."
The statement said, “Tuesday night’s story referencing our company in The Wall Street Journal included serious allegations from unnamed sources. We believe these allegations to be completely baseless and take very seriously any questions regarding our accounting and financial practices. We strongly deny and will seek to understand the origin of these allegations. As we told the reporter - who contacted our company for the first time on Tuesday regarding this matter - neither the company nor its executives have been contacted by the FBI, the SEC or any regulatory agency regarding our company’s accounting or financial practices.
"At all times, our company operates with the utmost integrity and holds itself to the highest ethical standards. We have stringent policies and procedures in place to ensure all of our accounting and financial processes and reporting comply with applicable laws, rules and regulations.”
The article in the Wall Street Journal said CBL & Associates "is under investigation by federal law-enforcement officials for alleged accounting fraud, according to people familiar with the matter."
It said the FBI and the Securities and Exchange Commission were looking into whether CBL & Associates "falsified information on financial statements to banks when applying for financing arrangements."
It said former CBL employees "allege the company inflated its rental income and its properties’ occupancy rates when reporting those figures to banks."
The article also said the alleged probe was looking into the relationship between CBL & Associates and Senator Bob Corker. It said he has made millions of dollars in profits in trading the company's stocks in recent years.
The Wall Street Journal said investigators "have found no evidence to suggest that Mr. Corker has committed wrongdoing."
A Corker spokeswoman hit the “baseless charges against Senator Corker.”