Probe of Florida Insurance Office Fundraising Underway

NU Online News Service

Florida 's Office of Insurance Regulation was being investigated today over allegations that state office equipment was use to prepare invitations to a political fundraiser.

The flap--which has cost one employee his job--was revealed yesterday when the state's chief financial officer, Democrat Adelaide "Alex" Sink, announced she was having her department's inspector general investigate.

She said she took the action after learning that Republican Insurance Commissioner Kevin McCarty "was reportedly the sole host for a political fundraiser" for Robin Lotane--the wife of Mr. McCarty's communications director, Bob Lotane.

Ms. Lotane, according to OIR spokesman Jonathan Kees, was running unopposed for Circuit Court judge.

"The Offices of Insurance Regulation and Financial Regulation were established to remove those offices and the commissioners from direct political activity related to their regulated industries," according to Ms. Sink. "I am concerned that Mr. McCarty may have used his position as insurance commissioner to solicit political contributions from the insurance industry."

Mr. McCarty reacted by announcing he was accepting Mr. Lotane's resignation and that, in addition to Inspector General Doug Darling from Ms. Sink's office, he had asked another inspector general attached to his office--Dan Callahan--to investigate.

Mr. Kees said Mr. McCarty had not seen the invitation before it went out, did not approve it, and did not attend the Wednesday reception at the exclusive Governor's Club in Tallahassee.

Ms. Sink said she had told the commissioner she was concerned "that his involvement was unsuitable and could cast Florida's regulatory system in an unfavorable light. While this may not be illegal, it is certainly not right."

She added that she was disturbed by the suggestion that state computers may have been used for political purposes.

Mr. McCarty said Mr. Callahan "will investigate this incident to ensure that no additional political activity has occurred on the premises."

He said his office "welcomes the DFS investigation and will cooperate fully. The office has, and continues to have the highest ethical standards. It is unfortunate this isolated incident occurred, but we will work to ensure this does not happen again."

Mr. Kees added that Mr. McCarty, while he had used his personal phone to invite people to Ms. Lotane's fundraiser, "did not use government resources."

Most of the people telephoned by Mr. McCarty were friends from the University of Florida, but because he has been part of the insurance business for an extended period of time, some of the friends called were from the industry, said Mr. Kees.

Later in an e-mail Mr. McCarty's office described Ms. Lotane is a personal friend of the commissioner and fellow UF grad.

Although the invitation said "host," this was disingenuous, as the fundraiser was held at the Governor's Club, of which, Commissioner McCarty is not a member. He was merely expected to attend, the e-mail explained.

It added that, "Just like everyone, Kevin McCarty is a private citizen who has constitutional rights to vote, and be involved in political campaigns, and he was exercising this right."