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City Officials Want Criminal Probe Into Hartford Insurance Controversy

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Two state departments are already investigating a businessman at the center of a Hartford insurance controversy.

Now, the city’s risk manager and a city councilman have asked for a criminal investigation.

In an Oct. 2 email obtained by the Courant through a Freedom of Information Request, Director of Risk Management John Griffin indicates that he asked the chief state’s attorney’s office to consider criminal charges.

Minority Leader Larry Deutsch, a member of the Working Families Party, also sent a letter to Chief State’s Attorney Kevin Kane Tuesday asking that Kane look into Earl O’Garro Jr., his company, Hybrid Insurance Group, and its relation to Hartford officials, including city Treasurer Adam Cloud.

The state’s insurance and labor departments have launched investigations into O’Garro, following complaints that he failed to pay employees at Hybrid and his now-defunct Middletown restaurant, Us, and that he tried to obtain payment on policy premiums for companies that did not exist.

The Insurance Department filed an 11-count complaint against O’Garro Friday. He must respond within 20 days and appear at the department’s public hearing Nov. 21. If he fails to appear, the state could suspend or revoke his license to conduct insurance business in Connecticut, and possibly issue a fine.

Hybrid, which O’Garro formed in 2010, has also been accused of failing to pay $670,000 in premiums to two of the city’s insurance carriers. O’Garro could not be reached for comment Tuesday.

In his letter to Kane, Deutsch said the council “must be assured there has been no criminal or wider fraudulent activity, and be certain to avoid continuation of such irregularities affecting the city.”

“There have been citizen reports and concerns about incomplete or fraudulent information, and steering of contracts among special insider interests,” he wrote. “This council has been unable to receive clear answers in these areas, which involve its administration and finance department, treasurer, and board of education. … Therefore, we now with some urgency ask for your involvement and investigation into these matters.”

Mark Dupuis, a spokesman for the chief state’s attorney, said Tuesday that Kane received the letter and that his office would “take the appropriate action.” He declined to say whether it would investigate the matter.

Hybrid came under state investigation after the company allegedly failed to pay $670,000 in premiums to Starr Indemnity and National Casualty, excess liability insurers for the city of Hartford.

City officials have called for the city’s internal audit commission to investigate what they described as a possible conflict of interest between Cloud and Hybrid. Cloud has denied that a personal relationship had anything to do with the city’s hiring of Hybrid as a broker.

O’Garro has also defaulted on a state loan for Hybrid Insurance Group and one his homes, at 83 Johnson Road in Marlborough, faces foreclosure, state and town records show.

Hybrid is two months behind on state loan payments and owes $105,792.46, including $73,858 for the loan principal and $26,320 to repay the state grant, according to a state spokesman.

As of late September, Starr Indemnity and National Casualty confirmed that they still had not received the $670,000 from Hybrid. The city treasurer’s office had wired the money to Hybrid in July to cover the city and school system’s excess liability policies.


Source Article from http://hartfordcourant.feedsportal.com/c/34278/f/623611/s/32c748b4/sc/42/l/0L0Scourant0N0Ccommunity0Chartford0Chc0Ehybrid0Einvestigation0E10A230E20A1310A220H0A0H4632250A0Bstory0Dtrack0Frss/story01.htm


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