NY Attorney General Eliot Spitzer’s ongoing investigation has produced another guilty plea, this time from an underwriter at Liberty International, a subsidiary of Liberty Mutual. The charge stems from bid-rigging; the underwriter, Kevin Bott, would submit unattractive bids at the direction of broker Marsh McLennan so Marsh would be able to show their client that another insurer’s proposal was more attractive.
By steering their customers to specific insurers, Marsh gained additional commissions.
Bott pled guilty to a misdemeanor charge, agreed to testify, and is subject to a maximum of one year in jail.
This is the investigation that won’t go away – the death by a thousand cuts, the Chinese water torture. And it shouldn’t go away, as these are clearly unethical and immoral activities that are also illegal. What is most troubling is the lack of attention from some in the industry who appear to be waiting for this to end so they can go on about their business.
Those folks are sorely mistaken. The world has changed, and business as usual will not be tolerated in the future.
Aug
9
