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Local Government Center denies it improperly used millions for workers' comp program
"The umbrella organization's activities have been under investigation for seeding a workers' compensation program through a surcharge that municipalities and their employees were paying through their involvement with the LGC's HealthTrust and Property-Liability programs.
"An investigation was conducted by the Secretary of State Bureau of Securities Regulation, which claimed the LGC misused the surcharge money and therefore owes the cities and towns which funded the seed money upward of $100 million.
"The umbrella organization's activities have been under investigation for seeding a workers' compensation program through a surcharge that municipalities and their employees were paying through their involvement with the LGC's HealthTrust and Property-Liability programs.
"An investigation was conducted by the Secretary of State Bureau of Securities Regulation, which claimed the LGC misused the surcharge money and therefore owes the cities and towns which funded the seed money upward of $100 million.
