Last month a federal judge dismissed the libel suit against former New York Governor, Elliot Spitzer, for an article he wrote in 2010 criticizing those charged in what has become known as the worst scandal to ever hit the insurance agency/brokerage system.
With this news I believe the ugliest of insurance stories is now over.
That doesn’t mean that compensation disclosure issues won’t continue to plague independent agents, that lawsuits won’t arise from time to time or that the heads of some large brokerage houses won’t continue their hypocritical crusade to eliminate contingency commissions for independent agents.
What’s been forgotten, and may not have even been known by many, is how damning the original evidence appeared to be against Marsh & McLennan and that its two executives at the center of it all were the only ones that decided to fight numerous criminal fraud and anti-trust charges while twenty one others copped pleas.
Marsh paid millions in fines and restitution, as did numerous carriers and most of the other large brokerage houses, but…these two Marsh execs, Gilman and McNenney, claimed they were scapegoats and after years of fighting they prevailed. They were resting peacefully until Spitzer wrote an article for the Wall Street Journal dragging their names back into the spotlight; and himself back into court.
Their suit against Spitzer is the one dismissed last month.
The story of the investigation, Marsh’s practices, Gillman and McNeeny’s trial(s) and Elliot Spitzers sexual trysts is one of the most compelling in the history of insurance. I’ve written a short story titled “KICKBACK” which tells how it all unfolded and, perhaps…why.
Those who may need a refresher can find dozens of documents on the original investigation into Marsh, Willis and other large firms including depositions, plea agreements, court and other related materials on this blog site–under the Library tab on the home page select “Miscellaneous Documents” and scroll to the bottom section titled “Marsh Kickback Scandal/Compensation Disclosure.”
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