MMC Cans More Execs
By Mark E. Ruquet
NU Online News Service, Nov. 5, 4:00 p.m. EST?Marsh & McLennan Companies has fired four executives in a contingency fee scandal that has rocked the insurance industry.[@@]
According to several press reports, the New York-based financial services firm has fired four executives connected to the scandal in which executives at its insurance arm, Marsh, were accused of bid-rigging, price-fixing, and tying of insurance contracts to take advantage of profitable contingency fee arrangement with insurance carriers.
MMC has not officially released the names of the executives. According to a Wall Street Journal report, a company official confirmed that four executives were let go. The action was taken after the company made its own internal investigation.
A call made to MMC for confirmation and comment of the reports was not returned.
Last week Michael G. Cherkasky, the company's new president and chief executive officer, said that four executives were suspended and at least one was fired.
Press reports have identified four of the employees as William Gilman, a managing director in Global Broking, Edward McNenny, Gregory Doherty, and Samantha Gilman. All four have been identified as having worked in Marsh's excess casualty line, where the current allegations point.
The scandal has lead to the expansion of investigations by a number of state regulators and Attorneys General and the elimination of contingency fee payments by some of the world's largest brokers and insurers.
Yesterday, Ace Ltd. said it has fired two employees and suspended three others in response to evidence uncovered in the scandal.
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