Wednesday, October 29, 2003
Some former directors of a union-owned insurance company may have violated federal labor and pension laws with special stock trades that earned them almost $6 million in questionable profits, a congressional investigation has found.
The GOP-controlled House Education and the Workforce Committee issued its report yesterday, saying it was deeply concerned about the stock deals at Ullico Inc. that pushed the D.C.-based company into financial turmoil. It urged regulatory investigators and law enforcement to scrutinize the transactions.
"Millions of workers deserve to know whether Ullico directors violated the law and made millions at the expense of rank-and-file union members they represent," said Rep. John A. Boehner (R-Ohio), the committee's chairman.
Ongoing investigations by the Labor and Justice departments, the Securities and Exchange Commission, a federal grand jury, and Maryland's insurance commission also should determine whether current laws are adequate to protect union members and workers and suggest changes that Congress should consider, the report said.
The report follows a six-month committee investigation, including the review of 95,000 pages of subpoenaed documents and witness testimony.