Published Tuesday, February 09, 2010

2 Georgia Republicans are feuding

By Winston Skinner

The Newnan Times-Herald

U.S. Rep. Lynn Westmoreland says he felt a telephone call from Georgia Insurance Commissioner John Oxendine was an effort to intimidate him politically.

The call -- about Westmoreland's membership on an insurance company's advisory board that ended several years ago -- occurred Dec. 9. Oxendine and Westmoreland are among the state's leading Republicans.

Oxendine is running for governor. Westmoreland, a Grantville resident who represents Georgia's Third Congressional District, is supporting Nathan Deal, another Republican, for the governor's post.

Westmoreland did serve on an advisory board for Southeastern U.S. Insurance Inc. in 2003 and 2004. The company, which specialized in worker's compensation policies, has since experienced financial difficulties and been liquidated.

Oxendine's office began an investigation of SEUS last fall. Last month, Oxendine announced a criminal investigation of M. Clark Fain III, the former chief executive officer of SEUS.

According to Brian Robinson, Westmoreland's press secretary, Oxendine called Westmoreland to ask about the SEUS investigation. Oxendine reportedly told the Westmoreland his name was on some SEUS documents and that he would work to keep the congressman's name from becoming public.

Westmoreland said the call felt akin to a "shakedown."

Oxendine has denied he was trying to pressure Westmoreland about his support of Deal. The insurance commissioner told Atlanta news media that he personally called Westmoreland -- instead of having a staff member make the call -- because of Westmoreland's being a sitting congressman.

Fulton County Superior Court Judge Thomas R. Campbell Jr. signed a consent order on Oct. 27 -- ordering SEUS into liquidation and naming Oxendine as the liquidator.

That order -- a civil ruling -- stated SEUS "is insolvent" and "continuation of its business would substantially increase the risk of loss to creditors, claiments, policyholders and the public." Oxendine and his staff were given considerable powers in handling the liquidation -- including pursuit of debts owed the company, access to all SEUS records and "all constitutional and statutory immunities."

Oxendine subsequently decided to "open a criminal investigation into the actions of" Fain, he announced in January. "I can only compare the bookkeeping methods of the company to those of Enron."

Department analysts became suspicious of SEUS when they learned that the company had engaged in a questionable transaction regarding a hunting club that it owned in Seminole County. At Oxendine's insistence, SEUS unwound the transaction. However, the department also discovered that the company was overstating assets while significantly understating liabilities.

"Indications are that this is a case of corporate greed," Oxendine said. "The questionable accounting engaged in by the company ultimately has a huge negative impact on the lives of decent, innocent citizens."

There have been reports of expensive travel by people associated with SEUS. Westmoreland's recollection is that he attended three board meetings in Atlanta during the two-year period he was on the advisory board. He said he did not take any trips at the insurance company's expense and he did not influence worker's compensation legislation on behalf of SEUS.

Westmoreland owned a construction company and also engaged in real estate before entering Congress. He also served in the Georgia House of Representatives for 12 years before entering Congress in 2005.