New York Life Insurance Co., the largest U.S. life insurer owned by policyholders, suspended the chief executive officer at a lending unit over violations of company policy, said a person with knowledge of the action.

Trevor Clark, CEO of Madison Capital Funding LLC and Christopher Williams, a senior managing director, were suspended with pay, according to the person, who asked not to be identified because the matter is private. They violated policies related to personal investments and business activities, the person said.

Madison Capital is a middle-market lender based in Chicago, and was formed by New York Life in 2001. Clark and Williams helped found the unit, which provides financing to private equity firms, according to the company’s website.

New York Life ‘is not in a position to comment at this time,” William Werfelman, a spokesman for the insurer, said today.

Attempts to reach Clark and Williams for comment by e-mail and at the company’s office weren’t immediately successful. The New York Times reported the suspensions earlier today.

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