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The Troubles at Ullico
Inc. Continue to Mount.
Carpenters union President Douglas
J. McCarron resigned from the Ullico board on March 13 in
protest over the boards lack of action in making management
changes recommended in an independent report.
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| 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.
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