A Rhode Island grand jury is investigating possible wrongdoing at the Beacon Mutual Insurance Co.
Michael Healey, a spokesman for Atty. Gen. Patrick Lynch, said today that grand-jury subpoenas have been authorized for "a number of different entities concerning allegations about Beacon Mutual Insurance Co.’’
Healey said that the Rhode Island state police and the attorney general’s office have been investigating the state's largest workers' compensation insurer "for a period of time.’’
The investigation predates a meeting in February in which Governor Carcieri talked to Lynch and the U.S. attorney for Providence, Robert Corrente, to pass along information he had received regarding allegations concerning Beacon.
Jeff Neal, a spokesman for Carcieri, said that the governor was passing along a draft audit of alleged favorable treatment of certain Beacon policyholders, including a company that had been owned by Sheldon Sollosy, the longtime chairman of the Beacon board.
The investigation, said Healey, "has been active and ongoing for a number of weeks and months now.’’
A company spokesman said today that the Rhode Island State Police delivered the subpoena to Beacon headquarters in Warwick at 3 p.m. yestersday.
"This is a new day at Beacon,’’ said the spokesman, Bill Fischer. "We have nothing to hide. The board, management and employees of Beacon intend on cooperating fully with both the state police and the Department of Attorney General. The doors are wide open.’’
The audit report, released a week ago yesterday, led to the firing early this morning of the insurer's CEO and vice president for underwriting. The action by the Beacon board of directors followed a closed-door meeting at the company that began at 4 p.m. yesterday.
The two executives had been suspended with pay after a lengthy board meeting last Friday.
ARTICLE TOOLS: 
