In a deferred prosecution deal with prosecutors, Zahn agreed to a lifetime ban from the securities industry, according to documents obtained by Pettigrew.
When First Trinity was founded in 2004, Zahn faced sanctions from the Oklahoma Insurance Department because of his past involvement with AmWest, according to agency records. The sanctions barred Zahn from serving on the company's board of directors, and he had to relinquish his power to vote his stock in the company, among other provisions. However, the sanctions were lifted 15 months later at the direction of former Insurance Commissioner Kim Holland, documents show.
Zahn said all of the information Pettigrew has released has been properly disclosed to shareholders and approved by state regulators.
“Mr. Pettigrew doesn't have a clue what he is talking about,” he said.
Zahn also added that he would meet with his attorney next week to consider taking legal action against Pettigrew.
Pettigrew said he feels obligated to share the information with Oklahomans who own stock in First Trinity.
“I have to let people know in case all of this stuff comes out later after I've left the board,” he said.
Insurance Department spokesman Kelly Collins said the agency could not comment on whether it would investigate First Trinity because investigations are confidential.
Irving Faught, administrator of the Oklahoma Securities Department, said he had not yet reviewed Pettigrew's letter and could not comment further on the matter.