After two years of investigation and months preparing an indictment, a huge fraud case against an even bigger insurance company went away – and it only rated page A3 in the Herald Leader: “Sensitive fraud investigation is shut down”. Oh, most likely this poor, underpaid federal prosecutor simply had excess time on his hands so he had some fun badgering the ever innocent insurance company. Those far more cynical than I speculate a conspiracy to block the case from going forward.
Essentialy, prosecutor David Maguire, in May of ’06, had felt:
strongly enough about his case to prepare a draft indictment accusing executives from a Virginia insurer, Reciprocal of America, of concocting a series of secret deals to hide its losses from regulators. Although he didn’t name anyone from Berkshire Hathaway’s subsidiary, he described the company as a participant in the scheme.
Maybe that feeling was just gas and it passed. The conspiracy minded saw it thusly:
Gober, a government-contracted investigator, concluded that the Justice Department had buckled under pressure from defense lawyers. Shortly before Maguire was removed, his supervisors were urging him to drop the case against General Reinsurance, Gober said.
Gober’s suspicions were fanned by allegations of politicization in the Justice Department after nine U.S. attorneys were fired. He took his complaints to the Office of Professional Responsibility, which investigates Justice Department misconduct.
“It just stinks,” he said. “You don’t come in out of nowhere and in no time kill three years of sophisticated effort.”
All I know is that two of my neighbors are getting entirely new roofs compliments of their home owner’s insurance while my insurance company won’t even replace the whole side of vinyl siding despite the quarter sized holes scattered about its surface (they seem to believe I can match 20 year old vinyl). Now, I realize this is not directly connected to reinsurance companies, except that it makes me wonder – hmmm, maybe there is a conspiracy after all.