Wednesday, November 21, 2012

Sex Toys and Insurance!


Those two things don't usually go together, but they apparently do at Citizens Insurance, your friendly neighborhood bilker of last resort.

The stuff about an employee running a sex toy business out of the company offices doesn't bother me -- who hasn't had that happen with clerical staff?

I did find this part about unnamed law firms allegedly getting paid millions to whitewash internal investigations to be interesting:
Some of the more embarrassing allegations against top executives at Citizens were outsourced to private law firms to investigate.

Repeatedly, those law firms found that the allegations against the executives were "unsubstantiated."
But when OCI went back to review the external investigations, it found cases where the law firms had been less than thorough in their probes, perhaps shielding executives from full scrutiny.

In one case, Citizens brought in an outside law firm to investigate an anonymous tip that Murphy, the Chief Administration Officer, had been misrepresenting herself as a lawyer for years. While the law firm determined the allegation to be "unsubstantiated," a later probe by the Office of Corporate Integrity found that the law firm failed to include relevant information. After OCI unveiled documents showing that Murphy--who is not a member of the Florida Bar--had identified herself as "corporate counsel," and "attorney" at Citizens, she resigned abruptly.

OCI found that Citizens paid more than $2.4 million to external law firms handling investigations into employee misconduct that ranged from drunken misconduct during company retreats to sexual harassment.

In 92 percent of the cases investigated by outside law firms, the allegations were determined to be "unsubstantiated." For comparison, Citizens' Office of Corporate Integrity found only 48 percent of the allegations it investigated were without merit.
Spill the (mung) beans -- who are the law firms?

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