Copyright 2010 A.M. Best Company, Inc.All Rights Reserved BestWire
February 17, 2010 Wednesday 02:43 PM EST
539 words
Bank Tied to Insurers, PACs Refused Georgia Subpoenas
Sean P Carr
ATLANTA
An Alabama bank linked to 10 insurer-connected political action committees that sought to contribute to Georgia Insurance Commissioner John Oxendine’s gubernatorial campaign refused subpoenas issued by Georgia’s State Ethics Commission. In a letter to the commission, an attorney representing Alamerica Bank of Birmingham, Ala., disputed the legal standing of the commission subpoenas, said Yasha Heidari, the commission’s legal counsel. Heidari said he understands the bank’s viewpoint and that the commission asked Georgia Attorney General Thurbert Baker to intervene with his Alabama counterpart to enforce the subpoenas, which seek financial records for the PACs.“They’re going to attempt to domesticate it and get it done there,” Heidari said.Heidari declined to release the letter, citing an ongoing investigation. Attempts to reach the attorney, Michael D. Waters, of the firm Jones Walker, for comment were not successful.The bank and the two insurance companies at the heart of the commission’s investigation share a director, Donald Watkins. “They’re all intertwined. It’s not like they’re a completely independent bank,” Heidari said.The subpoenas are part of an ethics investigation into $120,000 in donations to Oxendine’s campaign for governor. Ten political action committees each contributed $12,000 to Oxendine; according to an ethics complaint, those funds came from two Rome, Ga.-based insurers: State Mutual Insurance Co. and its affiliated company, Admiral Life, both run by Delos “Dee” Yancey III (BestWire, July 13, 2009).Georgia law forbids companies regulated by the Department of Insurance from contributing to campaigns for the office of insurance commissioner or campaigns by an incumbent insurance commissioner (BestWire, Feb. 16, 2010). The Georgia State Ethics Commission issued an advisory opinion that the insurance commissioner is not permitted to accept such contributions. Oxendine’s campaign maintained said it was unaware of the origin of the money and returned the funds (BestWire, May 12, 2009).The 10 PACs in question were set up in Alabama by Watkins, a director of State Mutual and Admiral Life. The election filing lists most of the PACs under the same Birmingham post office box, though two of them have the same Birmingham street address, which is listed under Watkins’ name. The PAC names: Cash N Checks PAC, Courtside Suite 10 PAC, FHA PAC, GD PAC, P PAC, Phillips PAC, T PAC, South Perry PAC and The Watkins Group PAC (BestWire, July 13, 2009).Attempts to reach Alamerica Bank and State Mutual and Admiral Life for comment were unsuccessful.An Oxendine rival for the Republican gubernatorial nomination, state Rep. Austin Scott, introduced a bill to bar “any person acting on behalf of an insurance corporation, partnership or business” overseen by the insurance commissioner (BestWire, Feb. 16, 2010).In January, Oxendine’s 13-year-old son shot another man, causing minor injuries, while quail hunting on property owned by Yancey. The state Department of Natural Resources recommended that Oxendine and his son take a hunting safety course.State Mutual Insurance has a current Best’s Financial Strength Rating of B+ (Good). (By Sean P. Carr, Washington Correspondent: sean.carr@ambest.com)
February 18, 2010
Terms and Conditions Privacy Policy
Advertisement
More Articles