Administration February 22, 2008

NY Judge Finds Former Marsh Execs Guilty of Bid Rigging

February 22, 2008 (PLANSPONSOR.com) - New York County Supreme Court Judge James A. Yates Friday morning found two former Marsh Inc. executives guilty of violating the Donnelly Act, New York's antitrust law, by rigging bids for insurance business.
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Business Insurance reports that while William Gilman, a managing director and former executive marketing director in Marsh Inc.’s Global Broking unit, and Edward J. McNenney, a former managing director and global placement director, were found guilty of violating the state’s antitrust law, they were acquitted of all other charges, including fraud and larceny. Gilman and McNenney were accused of steering business to selected insurers and preventing a competitive bidding process.

Lawyers for the former executives argued that the men acted solely in the interest of clients, fighting AIG’s grip on the market and securing the best insurance coverage possible, according to Business Insurance.

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Gilman, McNenney, and a group of other former Marsh executives were indicted in 2005 on various counts of bid rigging and fraud by then-New York Attorney General Eliot Spitzer and former State Insurance Superintendent Howard Mills. The officials accused the executives of colluding with employees at various insurers to rig the market for excess casualty insurance between November 1998 and September 2004.

The former executives and others involved in the alleged scheme would predetermine which carriers won business, set “targets” for the predetermined winner to submit as a bid, and obtain “losing bids” from employees at the accomplice companies, the indictment charged, according to the news report.

In January 2005, Marsh’s parent company Marsh & McLennan Companies (MMC) – a key target in the insurance bid-rigging probe -agreed to set up an $850 million fund to compensate clients hurt by business practices it called “shameful.” (See MMC Settles ‘Shameful’ Bid-Rigging Case )

Benefits February 21, 2008

Life Inspires Comedy: "Dilbert" Pokes Fun at "Dilbert" Firing

February 21, 2008 (PLANSPONSOR.com) - In a case of art imitating life, "Dilbert," the comic strip that depicts humor in the workplace, will this week poke fun at the firing of a Casino employee for posting a "Dilbert" strip at work.
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You may remember the story of Dave Steward, who worked for Catfish Bend Casinos in Burlington, Iowa for seven years, most recently as a security supervisor, and was fired for a “Dilbert” posting that essentially compared management to drunken lemurs.

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In a hearing for unemployment benefits, Casino management accused Steward of misconduct by insulting his employer, but an Administrative Law Judge sided with Steward, ruling that the posting of the comic strip represented “a good-faith error in judgment,” not intentional misbehavior (See Worker Fired for “Drunken Lemur” Posting Gets Unemployment Benefits ).

The Des Moines Register reports that “Dilbert” creator Scott Adams admitted that Steward’s firing was the inspiration for this week’s series of strips. “I know good comic fodder when I see it,” he told the newspaper, “and any chance to mock the humorless is worth the effort.”

The series of strips began on Tuesday with the following exchange between “Wally,” who depicts Steward, and “Catbert,” who depicts Steward’s manager at the Casino:

Catbert: “Wally, I have to fire you for posting a comic comparing managers to drunken lemurs. You won’t be eligible for unemployment benefits unless you can prove you were stupid as opposed to malicious. Can you prove you’re stupid?”

Wally: “Is there another explanation for working here?”

You can view the latest comic strip here . The original comic strip is here .

Steward told the Des Moines Register he was a combination of amused, honored, and embarrassed to be immortalized in “Dilbert,” but he is a big fan of Adams’ work. He said he will probably add this week’s series of strips to his scrapbook.

He also said when he finds new employment, he hopes to work for an employer with a sense of humor.

The administrative law judge’s ruling is here .

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