INSURANCE

South Amboy officials must compile and hand over seven years worth of records after receiving a state subpoena seeking information on insurance contracts and insurance brokers.

Investigators from the state Attorney General’s office delivered the subpoena to the city clerk’s office Thursday, stating they were looking for any over-charges to municipalities, school boards and other entities, city attorney John Lanza said.

State authorities, who demanded records from 2003 to the present, are also looking for failures of insurance companies to provide required coverage and benefits, Lanza said.

This is the third subpoena the city received this year, and city Mayor John O’Leary today said he welcomes this latest inquiry.

"I’m kind of glad they’re doing it because I think they will see that the City of South Amboy has done everything right regarding insurance," O'Leary said.

Lanza said he knew of "nothing from the city that untoward regarding insurance."

South Amboy has not used many insurance providers, Lanza said. For years the city received liability insurance from the Middlesex County Joint Insurance Fund, he said. Also, the city used the state sponsored health benefits program, until a few years ago when it switched to the Verizon Blue Cross Blue Shield, Lanza said.

On June 17, the city received a state subpoena seeking financial disclosure forms for city officials from 2005 to the present.

That same month the U.S. Attorney’s Office delivered a subpoena seeking information on salaries, bonuses, health benefits, reimbursement vouchers, travel, automobile allowances and city credit cards for O’Leary and his brother, Thomas O’Leary, the attorney said.

Lanza there were no records for Thomas O’Leary, and the only compensation the mayor receives is his roughly $8,000 annual salary.

John O’Leary early this year confirmed he had received a state subpoena concerning his insurance dealings with the city. O’Leary owns a brokerage firm, FHRM. He has said his company has never dealt with the city.

In August, O’Leary dropped his bid for the 19th District state Assembly seat, citing political attacks and anonymous allegations against him, his family and friends, and reports of the June subpoena.

O’Leary today said the state has been conducting a statewide investigation of insurance policies for government entities.

Peter Aseltine, spokesman for the state Attorney General’s Office, today said he could not confirm or deny whether there is an investigation of South Amboy.

John Figlar

Source: NJ.com   December 2009