Carpenters union President Douglas J. McCarron resigned from the Ullico board on March 13 in protest over the board’s lack of action in making management changes recommended in an independent report.

Douglas J. McCarron (Photo courtesy of Carpenter's Union)

Ullico, the union owned life insurance and investment firm, has been under federal investigation for approximately one year relating to questionable stock transactions by several of its board members, which include many current and former building trades presidents. Last year Ullico board members hired former Illinois Gov. James Thompson to conduct an independent query. The board, citing attorney-client privilege, has declined to make the report public. It reportedly calls on board members who profited from the stock transaction to return their profits. Sources say it also calls for management changes.

McCarron returned his profits from the stock transactions in November.

In his resignation letter to Ullico President Robert A. Georgine, the carpenters chief states: "I am disappointed that by now the recommendations Governor Thompson made in his report have not been implemented. I am disappointed that the other directors have not followed my lead in returning the profits from the stock transactions. I am disappointed that the company has not turned its core business around financially."

McCarron adds: "I question whether Ullico Inc., is going to follow the path that I strived to achieve as a director."

McCarron is not the first Ullico director to resign over the growing scandal. AFL-CIO President John J. Sweeney and Operating Engineers union President Frank Hanley resigned earlier this year over the handling of the Thompson report.

Ullico also has other woes. A.M. Best Co., the insurance rating service, has twice downgraded Ullico within the past few weeks. The first downgrade was on March 3 followed by a second drop on March 7.