Copyright

(c) 2010-2024 Jon L Gelman, All Rights Reserved.
Showing posts sorted by date for query AIG. Sort by relevance Show all posts
Showing posts sorted by date for query AIG. Sort by relevance Show all posts

Wednesday, February 8, 2017

Made by a robot...driven by a computer

The workers' compensation scheme is being challenged to potential extinction by the workplace in which it was created decades ago. Stressed by economic challenges that have been fueled by globalization and technology, workers' compensation benefit programs are now being dismantled by historic reforms that attack the core philosophical  principles of its very existence. 

The evolving dynamic of the world's automobile industry provides a focus on the new economy where goods are made by robots and operated by a computer.

Saturday, January 9, 2016

Insurance Company Plans to Track Movements of Workers In The Name Of Safety

A major workers’ compensation insurance carrier is planning to “tag” workers with individual movement trackers in the name of safety. Privacy issues were not addressed in the announcement.

American International Group, Inc. (NYSE:AIG) today announced a strategic investment in Human Condition Safety (HCS), an early-stage technology startup company developing wearable devices, analytics, and systems to improve worker safety.

Tuesday, December 16, 2014

Election 2016: Leveling the Playing Field For The American Worker

Senator Elizabeth Warren
As the political battlefield heats up for the 2016 Presidential Election, the issues dividing the American worker and corporate America grow. The recent passage of the Federal Governmental funding bill of in excess of $1.1 Trillion Dollars gives us insight into the major political/economic issue of growing inequality.

Funding the $2 Billion Dollar, 2016 Presidential Campaign, will require major contributions. A huge portion of that money will come from Corporate America. Even so, people actually vote and not corporations.

"Wall Street is one of the Democratic party’s biggest contributors."
Robert Reich

 "[Hillary] Clinton is obviously tough, but she just can’t speak with a clear voice against Wall Street and Washington insiders. Warren’s wing shows increasing passion and strength, both in opposing certain Obama nominees and in last week’s budget fight."

Click here to read "Warren Can Win" authored by David Brooks in the NY Times 12/15/2014
….

Jon L. Gelman of Wayne NJ is the author of NJ Workers’ Compensation Law (West-Thompson-Reuters) and co-author of the national treatise, Modern Workers’ Compensation Law (West-Thompson-Reuters). For over 4 decades the Law Offices of Jon L Gelman  1.973.696.7900  jon@gelmans.com  have been representing injured workers and their families who have suffered occupational accidents and illnesses.

Friday, October 3, 2014

Trenton NJ council approves sleeping employee’s $19K workers’ comp claim


Still frame from a video showing a Trenton city employee asleep in a running backhoe.Still frame from a video showing a Trenton city employee asleep in a running backhoe.
Today's post is shared from http://washingtonexaminer.com/
TRENTON......City officials did not even question publicly the workers’ comp claim of an employee caught sleeping on camera while on the job.
Charles Nottingham, a Trenton Water Works employee caught earlier this year snoozing in a video posted to YouTube while operating a backhoe, received the unanimous blessing of council to receive a workers’ comp settlement of $19,000.
“The complaint arose from allegations made by the plaintiff of work related injuries as it purportedly relates to his employment,” the resolution states, adding it is in the best interest of the city to settle the 2012 case.
Advertisement
The video posted in March, which has since been removed, showed Nottingham sound asleep in a running backhoe with his hands clasped over his stomach at a work site.
After the video surfaced, city officials stated they were investigating the matter.
Citing it is a personnel matter, Michael Walker, a spokesman for the mayor’s office, declined comment this week about the workers’ comp claim.
Nottingham is still an employee with Trenton Water Works. He earned a salary of $57,213 last year, according to online records.
His claim is not the first from that department to garner attention.
In January,...
[Click here to see the rest of this post]

Monday, September 22, 2014

Illinois: Employer Convicted of a Felony for Failure to Have Workers' Compensation Insurance

The Illinois Worker’s Compensation (IWCC), in conjunction with the Cook County State’s Attorney’s Office Special Prosecutions Division and the Cook County Sheriff’s Office, has secured the first felony conviction for failure to secure workers’ compensation insurance.
Mr. Ahmed Ghosien, d/b/a Ghosien European Auto Werks, refused to comply with Illinois law despite having been given several opportunities to become compliant.  After aggressive enforcement efforts, on July 25, 2013, Mr. Ghosien entered a guilty plea to the Class 4 felony (People v. Ahmed Ghosien, 12 CR 20949).  This is the first felony conviction against an employer for failure to obtain workers’ compensation insurance since the penalty increase, from a misdemeanor to a Class 4 felony, was introduced in 2005 and remained a critical part of Gov. Quinn’s reforms to the Worker’s Compensation Act in 2011.
“Employers who refuse to obtain workers’ compensation insurance put their employees at risk, gain an unfair advantage over law-abiding competitors, and ultimately shift the cost of their business to Illinois taxpayers,” said Michael P. Latz, Chairman, Illinois Workers’ Compensation Commission.  “I commend the diligence of our investigators and this cooperative effort to help protect workers.”
Mr. Ghosien operates a large European auto repair shop at 4001 1/2 Southwest Highway, in Hometown, Illinois.  IWCC...
[Click here to see the rest of this post]

Thursday, September 11, 2014

Editorial - Unscrupulous businesses hurt workers, honest competitors and economy

Today's  post is shared from starnewsonline.com/
Dishonest contractors are cheating taxpayers of millions of dollars and undercutting the livelihood of employees and law-abiding competitors. Regulators who are supposed to curb this type of abuse have done little to stop it.
By deliberately and illegally classifying construction employees as "independent contractors," these companies avoid paying unemployment, workers compensation and withholding taxes, among others. The extent of this abuse was documented in The Raleigh News & Observer and the Charlotte Observer as part of a larger series by McClatchy newspapers. The impact is mind-boggling.
Since 2009, the newspapers estimated that North Carolina contractors have cost state, federal and local taxpayers $467 million.
The problem extends beyond the taxman. Workers are cheated out of health insurance, workers compensation should they be injured on the job. The company doesn't pay into unemployment insurance designed to cover workers who are laid off through no fault of their own.
Many of these companies do not withhold payroll taxes, either, meaning that workers don't get credit for paying into Social Security. These "independent" workers often are paid in cash, many of them vastly underreport their income – thereby shortchanging Uncle Sam and the state kitty.
Moreover, companies that illegally cut corners often can underbid honest contractors who obey the law. Over the years there have...
[Click here to see the rest of this post]

Albany Law Professor defends 9/11 heroes' ongoing health issues

Today's post is shared from nyt.com/
Thursday marks the 13th anniversary of the 9/11 attacks on the World Trade Center, a very difficult commemoration for all Americans. One of the first responders who was there credits an Albany Law School professor for easing the pain for him and potentially for hundreds more.
Jaime Hazen is a former emergency medical technician who immediately went to the scene on 9/11 to volunteer with rescue efforts, but later, when he developed serious health problems, workers comp turned him down, until the Albany Law Professor donated his services.
“Every year at this time, it opens up old wound for all Americans,” says Hazan, noting the tears come far too easily this time each year.
“It was a war zone, a war zone, hell,” he recalled.
A former EMT living on Manhattan’s Upper West Side at the time, Hazan rushed first to Chelsea Piers to help with triage -- then to Ground Zero itself to volunteer for recovery efforts.
Later, like thousands of others Hazan developed serious breathing problems.
"I have had two surgeries and I need another surgery now," said Hazan.
“This is a group of people who really need to be compensated,” said Albany Law School Professor Mike Hutter.
He got involved after the Workers Compensation Board told Hazan and others who volunteered but were not affiliated with a rescue agency that they were not eligible for benefits. Hutter took...
[Click here to see the rest of this post]

Saturday, September 6, 2014

NH Governor Hassan Creates Workers’ Compensation Commission for Reform

In order to help reduce workers’ compensation costs that are a burden on New Hampshire businesses and ensure that injured workers have access to high-quality care, Governor Maggie Hassan today issued an Executive Order creating the Commission to Recommend Reforms to Reduce Workers’ Compensation Medical Costs.

“Employers and workers have done their part to increase workplace safety, but New Hampshire has become one of the most expensive states in the nation for workers’ compensation, a burden on businesses across the state,” Governor Hassan said. “By bringing together business leaders and experts from insurance, health care and labor, the Commission to Recommend Reforms to Reduce Workers’ Compensation Medical Costs provides an opportunity for stakeholders to identify ways to reduce workers’ compensation medical costs and ensure that injured workers have access to quality care. With these reforms, our businesses will be able to re-invest these dollars in growing their companies, creating new jobs and keeping our economy moving in the right direction.”

Tasked with making recommendations to reform New Hampshire’s workers’ compensation system, the commission will review the data behind New Hampshire’s high workers’ compensation costs; analyze efforts by other states to successfully reduce workers’ compensation costs; review how other states ensure continued access to quality care for injured workers; and develop comprehensive reforms that will reduce costs and premiums and improve New Hampshire’s workers’ compensation system while ensuring that injured workers have access to quality care.

According to the Oregon Workers Compensation Rate Ranking Study, New Hampshire rose from the 14th-most expensive state for workers’ compensation coverage in the country in 2008 to the ninth-most expensive in 2012. In addition, data from the National Council on Compensation Insurance shows that workers’ compensation surgical procedures in New Hampshire are 83 percent more expensive than those in the region and more than twice as expensive as they are nationally. For more information on New Hampshire’s workers’ compensation costs, visit www.nh.gov/insurance/media/pr/2014/documents/052214.pdf .

“New Hampshire is among the most expensive states for workers’ compensation, an unnecessary disadvantage for businesses that operate here,” said New Hampshire Insurance Department Commissioner Roger Sevigny. “I look forward to working with the commission to improve our workers’ compensation system by making recommendations to reduce costs and premiums while ensuring that workers have access to quality care.”

Commissioner Sevigny will be the chairman of the Commission to Recommend Reforms to Reduce Workers’ Compensation Medical Costs. He will be joined on the commission by New Hampshire Department of Labor Commissioner Jim Craig or a designee from the department, as well as a diverse group of experts representing workers, employers, insurance professionals and the health care sector.

The Commission’s final report is due to the Governor on December 1, 2014.

Other members of the commission are:
Brian Allen, Vice President of Government Affairs at HELIOS (formerly Progressive Medical/PMSI)
Donald F. Baldini, AVP and State Affairs Officer at Liberty Mutual Insurance
Pamela Bronson, Administrator at Access Sports Medicine & Orthopedics
Paul W. Chant of Cooper Cargill Chant
Tammy Denver, Director of Claims & Coverage Programs at NH Public Risk Management Exchange (Primex3)
Edward Dudley, Executive Vice President/CFO of Catholic Medical Center
Mark Erdody, Director of New England Claims for Cove Risk Services, LLC
Marc Lacroix, New Hampshire Physical Therapy Association and Director of Specialty Services at Concord Hospital
David Lang, President of Professional Firefighters of NH
Mark Mackenzie, President of NH AFL-CIO
Peter McNamara, President of NH Automobile Dealers Association
Dr. Gregory Soghikian of New Hampshire Orthopaedic Center
Ben Wilcox, President & General Manager of Cranmore Mountain Resort

Full text of the Governor’s Executive Order

Sunday, July 20, 2014

CCWC at Disneyland


photo

Today's post is authored by Julius Young and shared from workcompzone.com

I’ve been attending the 2014 California Coalition on Workers’ Compensation annual conference at Disneyland, which wrapped up yesterday.
On Wednesday the conference kicked off with a blogger’s panel featuring myself, insurance consultant and blogger Peter Rousmaniere, Workcompcentral.com publisher David DePaolo, and WorkersCompensation.com publisher Bob Wilson.  Mark Walls of Safety National Insurance moderated a lively discussion that got into some “out of the box” discussions about the direction of workers’ comp; in a coming post I’ll reprise some of the thoughts from the panel and offer some further insights.
CCWC is a major player on the California workers’ comp scene. Many of California’s big employers are members. I’m talking companies like Safeway, Walt Disney and UPS. CCWC is one of several prominent employer advocates in Sacramento along with the Cal Chamber and groups like WCAN (Workers Compensation Action Network).
Members of CCWC were pivotal in drafting and pushing through the 2012 SB 863 California comp reforms. Key board members clearly have the ear of Brown Administration policymakers. And the Sacramento lobbyists used by CCWC, Paul Yoder and Jason Schmelzer, are a talented bunch.
In short, the conference attracts many of the key employer and insurer players in California workers’ comp.
Here are some of the more interesting things I heard and some of my random impressions from the...
[Click here to see the rest of this post]

Friday, May 30, 2014

Intentional Fraud

All fraud is not actionable in workers' compensation. It is similar to discrimination action actions under the workers' compensation act. There is much talk, but few claims succeed, since they are based upon the element of intent.

This case caught my eye because of David DePaolo's recent blog post highlighting the recent, as David calls it, "Truly Imaginative" behavior of an individual playing two sides of the plot line.

The fraud issue struck a note for me as I have been reviewing cases for an upcoming seminar on workers' compensation issues. The decision of Bellino v Verizon, 2014 WL 10301786 (NJ App Div 2014) is a factual situation that seem to draw the ire of many insurance companies and employers. The injured worker failed to disclose some past medical information during a proceeding. The Court held that the element of intent was not proven.

Cases involving fraud are especially fact sensitive. Rarely does someone play both sides of the story line in perpetrating an intentional workers' compensation fraud scheme. Carlos Perry in West Virginia did so as the US Justice Department reports:

Knoxville Man Sentenced To Twelve Years Imprisonment For Workers' Compensation Fraud

Carlos Perry Found to Have Defrauded Six Insurance Companies Out of $401,649 in Benefits

FOR IMMEDIATE RELEASE
May 20, 2014
ABINGDON, VIRGINIA – United States Attorney Timothy J. Heaphy announced today that Carlos Perry, 58, Knoxville, Tenn. was sentenced last week in the United States District Court for the Western District of Virginia in Abingdon to twelve years in federal prison.

Perry was also ordered to pay restitution in the amount of $324,914.70. Perry had previously pleaded guilty to one count of mail fraud.

According to evidence presented at the sentencing and guilty plea hearings by Assistant United States Attorney Zachary T. Lee, between January 2011 and February 2014, Perry developed a scheme in which he defrauded six different insurance companies of workers’ compensation benefits using false business and fictitious employees.  An investigation by the United States Secret Service determined that Perry’s scheme entailed Perry impersonating an owner of six fictitious businesses located in Wise, Va., Johnson City, Tenn., Bristol, Va., and Abingdon, Va., in order to obtain workers’ compensation insurance.  Perry then filed false injury claims on behalf of the fictitious employees. 

Perry received the checks sent by the insurance companies and impersonated the fictitious employees at doctor’s visits and in communications with the insurance companies.  The United States Secret Service discovered that Perry utilized nineteen fictitious identities in the course of his scheme and used the social security numbers of numerous real persons to execute his fraud.  On January 29, 2014, Perry was arrested by the United States Secret Service and the United States Marshals Service at a doctor’s office in Kingsport, Tenn., where he was impersonating one of the fictitious employees.  As a result of Perry’s scheme, six separate insurance companies sustained a combined loss of $401,649.66. 

The investigation of this case was conducted by United States Secret Service, United States Marshals Service, and the Virginia State Police.  Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
.........

Tuesday, November 19, 2013

NLRB Office of the General Counsel Authorizes Complaints against Walmart, Also Finds No Merit to Other Charges

The labor movement was the catalyst for the legislation known as the Workers' Compensation Act following the Triangle Shirtwaist Factory Fire in 1911. Will this repeat itself? Today's post was shared by Steven Greenhouse and comes from www.nlrb.gov

The National Labor Relations Board Office of the General Counsel has investigated charges alleging that Walmart violated the rights of its employees as a result of activities surrounding employee protests.  The Office of the General Counsel found merit in some of the charges and no merit in others.  The Office of the General Counsel has authorized complaints on alleged violations of the National Labor Relations Act.  If the parties cannot reach settlements in these cases, complaints will issue.
The Office of the General Counsel found merit to alleged violations of the National Labor Relations Act against Walmart, such as the following:
  • During two national television news broadcasts and in statements to employees at Walmart stores in California and Texas, Walmart unlawfully threatened employees with reprisal if they engaged in strikes and protests on November 22, 2012.
  • Walmart stores in California, Colorado, Florida, Illinois, Kentucky, Louisiana, Maryland, Massachusetts, Minnesota, North Carolina, Ohio, Texas and Washington unlawfully threatened, disciplined, and/or terminated employees for having engaged in legally protected strikes and protests.
  • Walmart stores in California, Florida, Missouri and Texas unlawfully threatened, surveilled, disciplined, and/or terminated employees in anticipation of or in response to employees’ other protected concerted activities.
The Office of the General Counsel found no merit, absent appeal, to alleged violations...
[Click here to see the rest of this post]

Monday, November 4, 2013

The End of the Class-Action Carnival

The End of the Class-Action Carnival
Class actions have been a major vehicle to creating safer workplace in the past. It is imperative that the people have their day in court to maintain a democratically balanced system of  government. Today's post article is shared from businessweek.com.

F. Paul Bland Jr. brings class-action lawsuits for a living. Over the years he’s represented groups of plaintiffs in suits against payday lender Check ’n Go and financial institution Wachovia.

He’s worried about business drying up. As a result of hostile Supreme Court rulings over the last several years, scores of mass consumer and employment suits that would have been viable a decade ago have been dismissed, says Bland, a senior attorney with Public Justice, a nonprofit in Washington.

“People bring me cases against cable companies or big employers, and I say, ‘Forget it. It’s impossible. Not even worth trying.’ ”

The mass lawsuit—in which hundreds or even thousands of plaintiffs join together to go after a corporate defendant—is in deep trouble. Growing judicial skepticism toward such suits and toward the lucrative settlements they generate has caused plaintiffs’ attorneys to shy away from accepting lengthy, complicated cases.

That’s tilting the legal playing field decisively in favor of Big Business—and as the Supreme Court reconvened on Oct. 7 for its 2013-14 term, trial lawyers are bracing for more setbacks.
Not everyone is shedding tears. Walter Olson, a legal expert at the libertarian Cato Institute in Washington, attributes the decline of mass lawsuits to a predictable—and...

[Click here to see the rest of this post]

Sunday, November 3, 2013

12 Attacks On Workers’ Rights That Will Make You Kinda Mad

Today's post was shared by Steven Greenhouse and comes from www.buzzfeed.com

These are just a few examples of the numerous legislative attacks on workers—both union and nonunion—that took place in 2011–2012, as documented in a new report by the Economic Policy Institute. Many of these attacks were coordinated by a corporate-funded lobbying organization called the American Legislative Exchange Council (ALEC).
More recently, working families have been fighting back. To find out how, check out “10 Ways Working Families Are ‘Kicking Ass’ for the Middle Class.”

[Click here to see the rest of this post]

Saturday, October 26, 2013

Florida Upholds Low Counsel Fees

$164.54 for 107.2 hours of legal work

"Constrained by the statutory formula set forth in section 440.34(1), Florida
Statutes (2009), the judge of compensation claims awarded claimant’s counsel an
attorney’s fee of only $164.54 for 107.2 hours of legal work reasonably necessary
to secure the claimant’s workers’ compensation benefits. We do not disagree with
the learned judge of compensation claims that the statute required this result, and
are ourselves bound by precedent to uphold the award, however inadequate it may
be as a practical matter. "
*****
"In the circumstances, we certify to the Florida Supreme Court the following as a question of great public importance:
WHETHER THE AWARD OF ATTORNEY’S FEES IN
THIS CASE IS ADEQUATE, AND CONSISTENT
WITH THE ACCESS TO COURTS, DUE PROCESS,
EQUAL PROTECTION, AND OTHER
REQUIREMENTS OF THE FLORIDA AND
FEDERAL CONSTITUTIONS.

The fee award is affirmed, and the question of its constitutional adequacy is
certified to the supreme court. "


MARVIN CASTELLANOS, 
Appellant, 
v. 
NEXT DOOR COMPANY/ 
AMERISURE INSURANCE 
CO., 
Appellees. (Filed Oct. 23, 2013)

Sunday, October 20, 2013

Where is the Deep Water?

NJ Appellate Court allowed the assertion of a workers' compensation statutory lien against a liability award (NJSA 34:15-40), where the compensation insurance company paid the initial medical benefits without prejudice following a detailed dismissal by the Compensation Court before trial. This decision has far reaching consequences in defining when, on the timeline,  an insurance carrier's actions should trigger responsibility.

Workers' Compensation was designed as a summary and expeditious system paying injured workers who suffer an injury or illness at work. The benefits of treatment and temporary disability benefits are triggered by the event or manifestation of injury, and should flow quickly to the injured worker without a long, burdensome, and litigious process.

The payment of  major medical benefits by an employer, in the past, under The Sheffield Doctrine, has been considered to act as an estoppel, barring the denial of the compensation claim. The NJ Legislature modified its Workers' Compensation Act several decades ago, and allowed for the payment of medical benefits, without prejudice. The consequence  is that the injured worker is lulled into a sense of false security relying upon the implied acceptance of compensability. Albeit, the payment extends the statute of limitation for filing a formal claim.

The Court's dismissal, in the Greene matter, barring the assertion of the lien by the workers' compensation insurance company, was reversed and the lien enforced from the liability award.

Interestingly, the Court did not note that the technique of ordinary settlement, by payment of unauthorized medical payments, and/or for waiver of the right to appeal, was a common practice before the legislative enactment of NJSA 34:15-20. AIG in this case chose to "have your cake and eat it too."

Historically, prior to the legislative enactment of lump sum payments, pursuant to NJSA 34:15-20, voluntary dismissals were utilized as vehicle to compromise dependency, and other claims, for settlement. In those instances, following the dismissal of the workers' compensation claim, the parties would enter into a settlement, albeit a fiction, to settlement of the right to appeal and a letter of payment would be exchanged and/or a Release would be executed. Any potential was extinguished.

Beside the increased necessity of reducing the dismissal terms to writing, and/or stipulation of dismissal, the issue is generated of far the insurance company can step into the deep water before it comes committed to a decision. The Legislature needs to revisit this issue, and redefine the timeline for irrevocable commitment of responsibility, otherwise the initial Legislative intent for an expeditious, remedial administrative system will be defeated.

KELLY GREENE v AIG CASUALTY COMPANY, 
NJ App Div 2013 (Decided October 16, 2016) --- A.3d ----, 2013 WL 5629045 (N.J.Super.A.D.)

….
Jon L. Gelman of Wayne NJ is the author NJ Workers’ Compensation Law (West-Thompson) and co-author of the national treatise, Modern Workers’ Compensation Law (West-Thompson). For over 4 decades the Law Offices of Jon L Gelman  1.973.696.7900  jon@gelmans.com  have been representing injured workers and their families who have suffered occupational accidents and illnesses.

Saturday, October 19, 2013

On Strike: BART train kills 2 workers near San Francisco

Safety is a concern even if a labor dispute leads to a strike. Workers' Compensation covers all work connected events if the arise out of the employment. This post is shared from CNN.org 
An out-of-service Bay Area Rapid Transit train struck and killed two workers on a section of track northeast of San Francisco on Saturday afternoon, the transit authority said. 
The employees were making track inspections near the Walnut Creek station, BART said in a statement. One was an employee and the other was a contractor. 
The train was on a routine maintenance run with an experienced operator at the controls, but at the time of the incident, it was being run in automatic mode under computer control, BART said. 
The victims had extensive experience working around moving trains, the transit authority said. The procedures involved in track maintenance require one employee to inspect the track and the other employee to act as a lookout for any oncoming traffic, it said. 
BART's union workers are currently on strike over a variety of issues, including wages.
Following Saturday's deaths, one of the unions, Amalgamated Transit Union Local 1555, said it would not picket Sunday out of respect for the victims' families.

[Click here to see the rest of this post]

Monday, October 14, 2013

Lawsuit claims chemical spill at Armstrong caused worker's neurological disorder

Today's post is sahred from  inpews.com

Sandra Cooper remembers the exact date her life started to turn upside down: Sept. 25, 2003.
She'd gotten home from her job as an art teacher at Garden Spot High School around 4 p.m. that day. Her husband, Gene, who was on shift work at Armstrong World Industries floor plant, arrived home a short time later.

She heard him coming.

"I could hear the coughing even before he came up the sidewalk," Sandra Cooper said. "I've never heard anybody cough like that."

His eyes were watering, he had a blinding headache and he was screaming in between hacks. There'd been a spill at work, he told his wife. Chemicals. He had to help clean it up.

Friday, October 11, 2013

AIG Facing Lawsuit for Fraud

Today's post is shared from Courthousenews.com.
American International Group for nearly 40 years has been underreporting workers' compensation premiums, causing insured employers to pay improperly inflated state insurance surcharges, three federal classes claim.
     The coordinated suits were filed this week in San FranciscoManhattan and Newarkagainst AIG and its subsidiaries and affiliates. AIG is accused of unfair business practices, fraud, unjust enrichment and violations of federal anti-racketeering law.
     The California complaint, filed by Franjo Inc. and DMS Facility Services Inc., says it all began in the 1970s when AIG "devised, implemented, participated in, and carried out nationwide schemes - later characterized by AIG's own general counsel as 'permeated with illegality' - to miscategorize, falsely report, and falsely book the AIG companies' [workers' compensation] premium as other premium (for example, as 'general liability' premium), in order to reduce defendants' expenses, inflate their profits, and unjustly enrich themselves at the expense of plaintiffs and the class." (Parentheses in original.)
     AIG allegedly falsified certified annual financial reports that underreported workers' compensation (WC) figures to evade its equitable shares of financial responsibility for state-levied taxes and assessments. It caused state insurance regulators, through no fault of their own, to assess artificially inflated fees on insured employers, according to the complaint.
Click here to read the entire article.


Thursday, September 26, 2013

AIG CEO: Anger over AIG bonuses ‘just as bad’ as lynchings

Today's post was shared by Steven Greenhouse and comes from m.washingtonpost.com

Robert Benmosche (Bloomberg News)

AIG's CEO Robert Benmosche -- who came in to rescue the company after the 2008 financial crisis -- told the Wall Street Journal that the outrage over the bonuses promised to AIG's members was just as bad as when white supremacists in the American South used to lynch African Americans:
The uproar over bonuses "was intended to stir public anger, to get everybody out there with their pitchforks and their hangman nooses, and all that -- sort of like what we did in the Deep South [decades ago]. And I think it was just as bad and just as wrong."
Yes, enduring some public criticism for receiving multimillion-dollar bonuses after helping crash the global economy is a lot like being hanged from a tree by your neck until you die.
These kinds of sentiments don't emerge in a vacuum. Benmosche is expressing a view that was pretty common back in 2010 and 2011, when it was kind of a thing for members of the besieged 1 percent to compare public anger over their compensation to the way Nazi Germany treated the weak. There was supermarket mogul John Catsimatidis:
"Taxes are going to go up regardless. What I'm afraid of is, we shouldn't punish any one group. Whether we're punishing people who are wealthy," he said. "New York is for everybody; it's for the poor, it's for the middle-class, it's for the wealthy. We can't punish any one group and chase them away. We - I mean, Hitler punished the Jews. We can't have punishing the '2 percent group' right now."
...
[Click here to see the rest of this post]