Criminal Probe Seeks Beacon Data

A spokesperson for Beacon Insurance said today that the Rhode Island workers' compensation insurer is “cooperating fully” with a grand jury investigation into the non-profit company's operations.

The company has been undergoing a variety of inquiries since January when a whistleblower blew the lid off a variety of questionable coverage arrangements involving businesses that had cozy relationships with Beacon management.

After what he termed “abuses” surfaced, Gov. Donald Carcieri got the company board to fire the insurer's chief executive officer Joseph Solomon and David Clark vice president of underwriting.

In addition he said he was firing board members George Nee and Henry Boeniger earlier board member Edward Braks resigned.

Bill Fischer, a spokesperson for the board, said it appeared that Mr. Nee and Boeniger were keeping their options open as to whether they would appeal the governor's action. Gov. Carcieri has yet to name replacements for the two.

Mr. Fischer said the records sought by the State Attorney General's Office involved records that the board gave to the Giuliani Security & Safety firm, which help prepare a critical report on the insurer, which was released April 10.

Mr. Fischer said Beacon was ready to provide the material that was subpoenaed, “the door is wide open. Beacon board management and employees intend on cooperating fully there is nothing to hide.”

He said the requested data is currently being compiled and it may take some time because “we want to make sure we give an accurate accounting.”

Richard Berstein, executive counsel for the Rhode Island Department of Business Regulation, said that his agency meanwhile continues an ongoing market conduct exam of the insurer as well as a forensic audit.

He said the Beacon board after earlier blocking the DBR in court has now directed its attorneys to arrange for the transfer of Beacon employee computer hard drive records that were requested by forensic auditors.