Washington Post
Associated
Press
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.