Fla. CFO Says Insurance Office Probe Expanding

Florida's chief financial officer said today that she is expanding a probe concerning alleged political use of state-owned computers in the insurance commissioner's office.

Democrat Adelaide "Alex" Sink, the CFO, made her announcement six days after she announced an inquiry into the office of Republican Commissioner Kevin McCarty. It follows an apology by Mr. McCarty and his dismissal of a high-ranking staff member.

Ms. Sink said she has directed her inspector general, who was initially told to investigate, to ask Republican Gov. Charlie Crist's chief inspector general, as well as the inspectors general for Attorney General Bill McCollum and Agriculture Commissioner Charles Bronson, to conduct a joint investigation.

"As Florida's chief financial officer, I am committed to protecting the people's tax dollars and our state's resources. I am concerned about the allegation that state computers were used for political purposes in the Office of Insurance Regulation," said Ms. Sink.

"At this time, I feel it is necessary for the governor and cabinet to work together to expand the investigation. I am grateful for their cooperation and willingness to go forward so that we can get to the bottom of this situation for the people of Florida," she continued.

Ms. Sink initially announced a probe after she said she learned that Mr. 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.

Ms. Sink said she was concerned Mr. McCarty may have used his position as insurance commissioner to solicit insurance industry political contributions.

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.

Mr. McCarty said Mr. Callahan would investigate to ensure no additional political activity had occurred on the premises, and that his office welcomed the DFS investigation and will cooperate fully.

The commissioner said it was "unfortunate this isolated incident occurred, but we will work to ensure this does not happen again."

Mr. Kees added that while Mr. McCarty had used his personal phone to invite people to Ms. Lotane's fundraiser, he "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. Ms. Lotane was described as a personal friend of the commissioner and fellow UF grad.