O Administration’s prosecutors targeting GOP lawmakers ...Prudential agreed to pay a $35 million...
Transcript of O Administration’s prosecutors targeting GOP lawmakers ...Prudential agreed to pay a $35 million...
Page 50, The Detroit Legal News FRIDAY, OCTOBER 27, 2006
OPINIONOpen letter to President
Bush on insurance reformDear President Bush:
For years you have attackedlawyers and our civil justice sys-tem for a so called “lawsuit crisis”which you claim is causing insur-ance premiums to skyrocket andhurting the economy. Meanwhile,you have failed to hold the insur-ance industry responsible forfraudulently raising premiumsand denying coverage while mak-ing windfall profits on the backsof Americans.
Your stalwart support of theinsurance industry over Ameri-cans is unsupported even by factsand studies from your own admin-istration. For instance, JusticeDepartment statistics show thatinjury cases filed in U.S. DistrictCourts fell 80% between 1985and 2003 and Bureau of JusticeStatistics show that the number ofstate personal injury trials hasdecreased 32% between 1992 and2001. In Michigan the insuranceindustry itself reports a 75%decline in payouts to medical mal-practice victims, and the numbersof civil lawsuits regarding wrong-doing and injury have beendeclining drastically for years.
So what is the real problem ifnot lawsuits and our civil justicesystem? The real problem is arunaway, unregulated insuranceindustry. There’s only one solutionto that, Mr. President: insurancereform.
The insurance industry is theonly industry (outside of majorleague baseball) that is unregulat-ed. The trillion-dollar insuranceindustry, which has been makinghuge profits for years, must beheld to the same standards asother businesses; namely f iscalaccountability, transparency, andhonesty.
Insurance reform would helpworking families, doctors, smallbusiness owners and our economyby lowering insurance premiums,ending insurance company fraud,and curtailing price gouging bythe insurance industry.
There are numerous examplesof insurance industry gouging,Mr. President. Despite HurricaneKatrina – and in the face of hugeand rising premiums for all of us– the insurance industry rackedup $44.8 billion in prof its lastyear for homeowners and autoinsurance alone while raising itssurplus by more than 7% to near-ly $427 billion.
Even your wealthy friend Sen-ator Trent Lott was cheated by theinsurance industry after his Mis-sissippi home was destroyed byHurricane Katrina. Insurancereform could prevent such huge,economically devastating, andwidespread fraud, Mr. President.
Mississippi Attorney GeneralJames Hood described insurerswho defrauded homeowners afterKatrina as “the robber barons ofour time.” Mississippi was forcedto sue the insurance industrybecause adjusters tried to cheathomeowners out of millions ofdollars in claims. But one state,standing alone, is no match for an
industry with hundreds of billionsof dollars to protect it.
Here in Michigan, the insur-ance industry used its muscle toevade and finally destroy a lawthat merely required the numberof medical malpractice insurancecases be reported so that lawmak-ers might have some idea if theselawsuits were really increasing asthe insurance industry claimed(suits were rapidly declininginstead).
In Oklahoma, tornado victimswere cheated when State Farmacted “recklessly” and with “mal-ice” in denying insurance claimson their family homes. The FBIraided Hospital Corporation ofAmerica off ices after massivesystematic Medicare insurancefraud and HCA pled guilty to 14criminal counts and agreed to pay$1.7 million to settle the case.California earthquake victimswere routinely defrauded by StateFarm, and State Farm off icialslied in court about it. Prudentialagreed to pay a $35 million fineand set aside money to settle poli-cyholder suits after an investiga-tion found the company haddefrauded more than 10 millionlife insurance customers.
In New York, Attorney GeneralEliot Spitzer uncovered ubiquitouswrongdoing in the insuranceindustry, testifying that “a smallgroup of brokers and insurancecompanies essentially control themarket, having created a networkof interlocking connections andsecret payments which ensure thatthe bulk of business goes to certaininsurers and that profits remainhigh. The bottom line is the con-sumer pays more for coverage.”
Mr. President, we can all worktogether to stop this. Insurancereform worked in California.After pro-insurance “caps” on therights of victims hobbled the legalsystem, insurance premiums fordoctors still increased by anastounding 190%. When insur-ance reform was enacted, remov-ing the insurance companies’ anti-trust exemptions, doctor’s insur-ance premiums finally leveled off.
In Missouri lawmakers votedoverwhelmingly to give the stateinsurance director more authorityto veto doctor’s insurance premi-ums that are “excessive” or other-wise inappropriate.
Insurance reform – such aslegislation to remove the antitrustexemption for the insuranceindustry and to create account-ability over hundreds of billionsof dollars of our premiums dollars– would go a long way towardhelping to lower rates for every-one, and reign in insurance com-pany fraud and price gouging.
Instead of bashing our civilcourt system and underminingour Constitution Mr. President,you need to stand up to the insur-ance industry and enact insurancereform.
Yours truly,Jesse M. Reiter
President, Michigan TrialLawyers Association
Administration’s prosecutors targeting GOP lawmakersBY LARA JAKES JORDAN
Associated Press Writer
WASHINGTON (AP) — Pub-lic corruption cases brought byJustice Department prosecutors inWashington are on the rise, fueledin part by investigations targetingRepublican lawmakers in Con-gress.
With the Nov. 7 electionslooming, prosecutors have movedforward on investigations of threeGOP lawmakers in the last monthalone. And several Justice Depart-ment officials privately hint thateven more inquiries — involvingRepublicans and Democrats alike— may be under way.
“We can’t look at what partysomeone is a member of in decid-ing whether or not to pursue aninvestigation,” Attorney GeneralAlberto Gonzales told reporterslast week, calling governmentcorruption prosecution one of histop priorities. “We have to followthe evidence wherever it leads.”
Gonzales said there is “no spe-cial emphasis” on those cases asthe elections approach. But theJustice Department generally triesto keep a low profile on govern-ment corruption cases in themonths before an election toavoid unfairly influencing voters.
Justice Department data showa 60 percent increase over the lastfive years in government corrup-tion convictions and settlementsby its Washington-based publicintegrity unit. Prosecutions result-ed in 84 convictions and settle-ments in 2005, the data show,compared to 52 in 2001.
The aggressive pursuit ofRepublican lawmakers by Bushadministration prosecutors is asign of the independent streak ofcareer attorneys inside the publicintegrity unit, said Paul F. Roth-stein, a legal and governmentethics professor at GeorgetownLaw School.
“A lot of them are nonpolitical— they do have a taste for rootingout corruption and wrongdoing,”Rothstein said. “There are sometensions coming from it. ... It’sprobably a very delicate and ago-nizing situation for the politicalappointees at the top” of the Jus-tice Department.
Investigations by the publicintegrity unit at Justice headquar-ters in Washington make up onlya sliver of public corruption casesprosecuted nationwide, most ofwhich are handled by U.S. attor-neys’ offices. Last year, for exam-ple, federal prosecutors aroundthe country charged 445 govern-ment officials, resulting in 390convictions.
With only 29 attorneys, thepublic integrity unit in Washing-
ton is small when compared to the450 government lawyers whoprosecute criminal cases in thecapital.
The unit’s prosecutors general-ly lead or assist in high-profilecorruption or national securitycases, including inquiries involv-ing members of Congress or theadministration. According to itsannual report, the unit had fiveopen investigations — all of themunidentif ied — involving Con-gress at the end of last year.
The unit has seen an increase“in certain kinds of corruptionthat gets in newspapers,” said oneprosecutor who spoke on condi-tion of anonymity because of thesensitive nature of the cases. “Anytime you’re investigating a mem-ber of Congress, it’s going to get alot of attention.”
In the last month, the JusticeDepartment has moved forwardon inquiries involving two HouseRepublicans: Reps. Mark Foley ofFlorida and Jim Kolbe of Arizona,both being investigated for possi-ble improper or illegal sexual con-tact with teenage congressionalpages. At the same time, prosecu-tors stepped up their investigationinto whether Rep. Curt Weldon, aPennsylvania Republican, steered$1 million in contracts to hisdaughter’s lobbying firm.
All three men have denied thecharges. Foley resigned shortlyafter the allegations surfaced,while Kolbe is retiring from theHouse.
Additionally, three otherHouse Republicans and one GOPsenator, as well as two HouseDemocrats have been linked toongoing Justice Departmentinvestigations over the last year.Two other House Republicans —Reps. Randy “Duke” Cunning-ham of California and Bob Ney ofOhio — have pleaded guilty tocorruption charges.
Experts say the spike in report-ed corruption cases is likelycaused by one-party control ofboth the House and Senate. Inves-tigations by the Republican-con-trolled House Ethics Committee,for example, ground to a near-standstill for more than a yearbecause of partisan squabblesover staff and rules for itsinquiries.
“It’s far worse than what we’veseen for decades on Capitol Hill,”said Craig Holman of the watch-dog group Public Citizen. “We’vegot sex, we’ve got bribery, we’vegot lobbyist corruption, earmark-ing, money laundering. ... Thepeople who are in power becomevery comfortable with their posi-tions, and they don’t think thatthey can get in trouble for step-ping over the line.”
Fire chief charged with setting vacant buildings ablazeBY WOODY BAIRD
Associated Press Writer
TIPTONVILLE, Tenn. (AP)— The city’s fire chief and threevolunteer firefighters, includingthe chief ’s grandson, werecharged recently with setting astring of f ires in vacant build-ings over the past two years.
The men, all members of theTiptonville Volunteer FireDepartment, were arrested lastweek. No one was hurt in theblazes they were accused ofstarting.
All four men were in theLake County jail after a judgeset bond at $100,000 for FireChief James Blackburn and$25,000 or more each for theothers.
Neighbors were aware some-one was setting f ires, but theywere shocked when the f ire-fighters were charged.
“Everybody knew that we hada firebug for a couple of years,”said Johnny Whitson, who ownsan auto body shop near wheretwo buildings burned.
Norman Rhodes, police chiefin this town of 2,400 peopleabout 90 miles nor theast ofMemphis, did not give a motive.
“I don’t think anybody has anexplanation,” Rhodes said.
The charges list 10 structuresthat were burned from August2004 to June 2006 – several with-in 150 yards of Blackburn’s home.
A judge appointed lawyers forall four men. Two attorneysdeclined to comment, and theothers did not return recent calls.
The men are scheduled toappear in court next week forarraignment.
Police began investigatingshortly after the fires began andhave been “pretty sure” about
the suspects for the past year,Rhodes said.
The police chief said hecalled on the state for help withthe arson investigation, and thatJames Blackburn, as fire chief,knew about the probe.
“He was actually giving mestatic about calling in bomb andarson investigators, said that washis job,” Rhodes said.
Charged in the investigationwere Blackburn, who is alsosuperintendent of the city waterplant; his firefighter grandson,Brandon Blackburn; and f ire-fighters Floyd Joe Kilburn andChris Burrus.
But the police chief and otherTiptonville residents said therehave been many other suspiciousf ires that no one has beencharged with setting.
Robert Dougherty said hemoved next door to the fire chiefabout six months ago and hasbeen amazed by the number offires in the area.
Across the street is the rubbleof a burned house, and a burnedshed sits in a neighbor’s backyard. Neither fire is listed in thecharges.
“The house burned twice; theshed burned three times,”Dougherty said.
Phil Bivens, district attorneygeneral for Lake County, said ifconvicted the firefighters couldreceive three to 15 years inprison.
“One of the factors the courtwill look at is that they are in aposition of public trust as fire-men,” Bivens said.
“I just hate that it happenedin my town,” said Rhodes,adding that he attended schoolwith Blackburn. “These are peo-ple that children look up to.”
BY JANE C. PARIKH
Kalamazoo Gazette
KALAMAZOO (AP) — Long before you, yourkids or the people at the office gear up for Hal-loween, Antony Gerard is already selling scarymasks.
Months after you take down the orange and blackcrepe paper, toss the pumpkins and finish off thetrick-or-treat candy, he and his family are still sellingthem — not only here but all over the country.
“We’ve had sales from just about all of the 50states,” said Gerard, owner of the Timid RabbitMagic and Masquerade Shop in Kalamazoo. “Butmost of sales continue to be in the Midwest.”
By answering a simple question posed by hisfather, a financial planner, Gerard was launchedinto turning an enterprise built around a single sea-son and his love for magic and mask-making intoone that sells magic tricks, custom-made outfits forsports mascots and custom-made costumes andmasks into a successful year-round business.
Gerard said that as he started his business in themid-1970s, his father asked, “What if there was noHalloween?”
Gerard said he thought that was a stupid ques-tion and answered, “There will always be a Hal-loween.”
But his father persisted, asking: “But, what ifthere wasn’t? How would your business survive?”
Diversif ication to serve other holidays andevents has been the key for the Timid Rabbit,which has scary-goods sales heading into Octoberbut otherwise would suffer a frightening drop-offin sales during the offseason.
While he would not cite numbers, Gerard saidOctober sales of masks, costumes and other goodsare four to five times higher than sales for mostother months, and there is a corresponding drop inprofits.
“Most of the year it would be cheaper for us toclose than stay open,” Gerard said. “But Halloweenthrough Christmas is a busy time for us.
“People are renting Pilgrim costumes forThanksgiving events and Santa Claus outfits forChristmas.”
Business slows down in January, but Gerardsaid sales at the shop pick up again for Valentine’sDay, Mardi Gras and Easter.
As Gerard Enterprises, the business also manu-
facturers and sells haunted-house props, magicsupplies, special-effects items and novelties. Thosehave been promoted through trade shows.
Besides the shop, Gerard and his wife, Laura,also run Phobia House, a haunted house that opensin early October and runs through Halloween.
The Timid Rabbit shop has been at its locationsince 1990. Its upper level houses costume retailand rental areas, and the lower level is where Ger-ard, his wife, their two college-age sons andAntony Gerard’s mother craft custom and mass-designed masks and costumes.
One mask may take four days to complete andcan sell for $200 to $1,000, depending on whatcustomers want and whether they want it to fit theirfaces perfectly, Laura Gerard said.
“If we think it’s something that could fit into ourline that we would sell, we don’t charge as much,”she said.
Antony Gerard estimates that he and his helpersmake about 1,000 masks and about four dozenmascot outfits each year. The mascot outfits are forathletic teams as well as businesses. The shop pro-duced Buddy The Bull for instance, for Brann’sSteak House & Grille.
The shop stocks more than 11,000 costumes andmasks.
A deluxe witch mask designed and sold by theshop “probably outsells all of the other masks 3-to-1,” Antony Gerard said. That is followed by an apemask that he designed.
Those products, in addition to Gerard’s magictricks, are shipped throughout the year to cus-tomers in the United States, Australia, Canada,England and Puerto Rico.
Laura Gerard said about 5 percent of total salesare international. The remainder are in the UnitedStates.
“Canada is bigger than any of the other coun-tries we get orders from because it’s closer,” shesaid. “Puerto Rico would be the second because it’scheaper for us to ship there.”
Antony Gerard said he recently shipped twocustom-made electric chairs — for show purposesonly. One went to a customer in Virginia and theother to the Chicago Police Department.
——— On the Net:Gerard Enterprises: http: //www.gerardenter-
prises.com.
Chris Altman (left) applies a prosthetic nose and chin to Adrian Johnson before paintingher green to turn her into a witch at the Timid Rabbit Magic and Masquerade Shop inKalamazoo.
AP Photo, Kalamazoo Gazette, by Jill McLane Baker
Company’s masks more for than just Halloween
DSO reunites with Järvi to perform William Tell Overture
The Detroit SymphonyOrchestra saddles up for a seriesof concerts that reunite theOrchestra with DSO MusicDirector Emeritus Neeme Järvi inthe first of two concert series hewill lead in Detroit this season.Titled “William Tell,” the pro-gram includes Gioacchino Rossi-ni’s popular and evocative Over-ture to “William Tell”; EdouardLalo’s violin concerto, “Sym-phonie Espagnole,” featuringIsraeli violinist Vadim Gluzman;and Dmitri Shostakovich’s “Sym-phony No. 15.” The concerts takeplace at Orchestra Hall at theMax M. Fisher Music Center onFriday, November 10, at 8 p.m.,Saturday, November 11, at 8:30p.m., and Sunday, November 12,at 3 p.m.
Rossini’s thrilling overture tothe opera William Tell is often bet-ter known as the theme to “TheLone Ranger,” a radio programthat got its start in 1933 in Detroiton WXYZ-AM. The last of Rossi-ni’s operas, “William Tell” is con-sidered the culmination of Rossi-ni’s mastery and innovation in Ital-ian and French music. The pro-grammatic overture is seen bymany as a precursor to the tonepoem. It opens with the depictionof the beautiful Swiss landscape atdawn and builds to depict a pow-erful Alpine storm, then subsidesinto pastoral calm. This tranquilityis interrupted by a trumpet fanfareannouncing the well-known finalerepresenting Tell’s ride with theSwiss Army, which vividly evokes
the image of Tell’s (or The LoneRanger’s) galloping horse.
Edouard Lalo’s “SymphonieEspagnole” resembles a dancesuite with soloist. However, Lalorejected the name suite; for him, itwas a “worn-out tag.” Instead, hechose symphony because, as heexpressed, “it conveyed mythoughts – that is to say, a violinsoaring above the rigid form of anold symphony.”
Shostakovich’s “Symphony No.15” quotes many well-knowncompositions including “WilliamTell.” The finale uses music basedon the “Annunciation of Death”leitmotif from Wagner’s “TheRing of the Nibelungs,” as well asHaydn’s f inal symphony.Shostakovich, often impreciseabout his works, described thefirst movement as childhood-like,“just a toyshop, with a cloudlesssky above.” In contrast, the finaleis riddled with allusions to death,making this one of the most para-doxical and poignant symphoniesever composed.
Violinist Vadim Gluzman hasbeen lauded by both critics andaudiences as a performer of greatdepth, virtuosity and technicalbrilliance. Gluzman has per-formed throughout the UnitedStates, Canada, Europe, Russia,Japan, Korea and Australia as asoloist and in a duo setting withhis wife, pianist Angela Yoffe.Gluzman, in technique and sensi-bility, is reminiscent of GoldenAge violinists in the 19th and 20thcenturies, yet at the same time,
displays the passion and energy ofcontemporary violinists.
Neeme Järvi, the DSO’s musicdirector for 15 years, returns toDetroit after a summer of perfor-mances in distant locations, fromJapan to his native Estonia. Järvi,the second-longest serving musicdirector in the DSO’s history, isone of the world’s most recordedconductors with a distinguishedrecording repertoire includingmore than 360 discs. Followinghis appointment in 1990, Järvi ledthe DSO to new artistic and insti-tutional heights, attracting audi-ences in record numbers, leadingacclaimed concerts, national andinternational tours, radio broad-casts and award-winning record-ings.
Tickets for the DSO’s ClassicalSeries concerts range in pricefrom $19 to $69. A limited num-ber of box seats are available for$61 to $117. Tickets may be pur-chased at the Max M. FisherMusic Center box office, locatedat 3711 Woodward Avenue inDetroit, or by calling the DSO at(313) 576-5111. Seniors (ages 60and over) and students can pur-chase 50% off rush tickets at thebox office, ninety minutes prior toclassical concerts, based on avail-ability. Discounts are available forgroups of 10 or more.
All regular priced tickets canbe purchased on line via theDSO’s Web site at www.detroit-symphony.com.
For more information, call(313) 576-5111.
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