WellCare CEO Has Seen This Movie Before

OKLAHOMA CITY -- WellCare (WCG Quote) investors, already nervous about tight-lipped company leaders, better hope that history doesn't repeat itself.

Weeks after government officials swarmed its Florida headquarters, WellCare still has offered no clues about the focus or potential impact of a sweeping investigation of the company. Despite that uncertainty, investors have taken comfort in the fact that WellCare boasts a strong track record and seems to employ a topnotch management team. Up to now, in fact, WellCare has ranked as a perennial Wall Street favorite known for its ability to make a fortune providing government-subsidized health insurance for the elderly and the poor.

But past disasters at companies tied to WellCare leaders, including CEO Todd Farha, suggest that current investor confidence could prove misplaced. Notably, before taking over at WellCare -- and transforming the company into a Wall Street darling -- Farha worked for two booming health insurers that suffered spectacular collapses. ...