UPDATED: RI Leaders Call for Kilmartin to Step Aside and Ask for Independent Investigation
Saturday, August 26, 2017
A growing chorus of Rhode Island leaders tell GoLocalProv.com that Rhode Island Attorney General Peter Kilmartin should step aside and an independent investigator should be appointed to look into the bankruptcy of the St. Joseph Health Services pension fund.
The collapse affects nearly 3,000 retirees and workers and looks to be the largest pension fund collapse in Rhode Island history.
Included in the group calling for Kilmartin to step aside is the union that represents many of the workers in the fund.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTUnited Nurses and Allied Professionals (UNAP) general counsel Christopher Callaci released the following statement to GoLocalProv on Friday. "As we've said, we agree with the Senate President's suggestion that there should be an investigation. We have the greatest respect for the career prosecutors and staff in the Office of Attorney General. However, given that the office played a pivotal role in allowing this deal to move forward in 2014, we believe it is in the best interest of our members and retirees if an independent party led any such investigation. Either way, we intend to continue pursuing what factors led to the pension funds insolvency," said Callaci.
Leaders Calling for Independent Investigation Grows
Former Attorney General Arlene Violet, tells GoLocal that Kilmartin’s involvement in any investigation of St. Joseph Health Services pension fund “creates the appearance of a conflict of interest. Kilmartin needs to step aside.”
The office of Senate President Dominick Ruggerio, who when asked if the President stood by Thursday’s call for an investigation by the Rhode Island State Police and Kilmartin, responded, “The Senate President has great confidence in the State Police.” The Senate President's office added that regardless of the investigator, the State Police will hopefully be involved.
The Speaker of the House Nick Mattiello also raised concerns. "I support an investigation. The retirees who have worked all their lives for this benefits deserve answers. Yes, some consideration has to be given to who would conduct an investigation – perhaps the State Police and an additional entity should be involved," said Mattiello on Friday.
Forbes columnist Ted Siedle, who is expected to become the biggest whistleblower in the history of the U.S. Securities and Exchange Commission’s history, tells GoLocal, “Kilmartin may have culpability for his role [in approving the sale of St. Joseph], he would not be an appropriate person to investigate."
Siedle is slated to receive a nearly $50 million award from the SEC for a case involving JPMorgan. He has also stated he is looking at running for Rhode ISland Attorney General. Presently, he is a Florida resident.
“I fully support a thorough investigation into what happened with the St. Joseph Health Services pension fund. The fact that a $95 million pension fund could be insolvent in just three years is extremely alarming. We as a state have to do our due diligence to get to the bottom of this. The pensioners who are going to be impacted deserve an independent review, ” said Cranston Mayor Allan Fung. He is a Republican candidate for governor in 2018
Kilmartin's Role in the Collapse
On Thursday, Mattiello blasted Kilmartin when he appeared on GoLocal LIVE. "Well, I am not sure I agree with that assessment (that the Attorney General didn’t have authority). He certainly had the authority. And, he should have been looking at it (pension funds)," said Mattiello.
"If he has specific concerns he should bring it to my attention. We will address it," added Mattiello.
Mattiello pointed out that Kilmartin was a long-time member of the legislature and never made any effort to amend the HCA as relative to pension funds nor had Kilmartin brought any concerns to his attention.
"When pension funds are not funded approved folks get hurt and I've heard from constituents...I look forward to hearing what the Attorney General has to say," said Mattiello.
Kilmartin's claims are inconsistent with the statutory requirement for his office and for the comments, Kilmartin made with the approval of the sale of St. Joseph.
At the time of the agreement in 2014, Kilmartin said, “The transacting parties have worked diligently to provide regulators with the necessary documentation and information throughout this review process to make this decision, a decision I believe is in the best interest of Rhode Island’s healthcare marketplace, the community, the employees, and most importantly, the patients.”
Kilmartin said in his statement, “Conducting a hospital conversion review requires the commitment of a substantial amount of resources for the Office of Attorney General. I commend my staff for the time and careful consideration put into this review process.”
Governor Gina Raimondo’s office refused repeated efforts for comment.
Kilmartin and 38 Studios
Kilmartin voted for the funding scheme for 38 Studios and had just weeks earlier been a member of the House Leadership the jammed the legislation thru the legislature. Kilmartin has been widely criticized by many, including Governor Raimondo, for not recusing himself from the investigation of 38 Studios. Kilmartin allegedly was interviewed for his role in the 38 Studios controvery but then-RI State Police Colonel Steven O'Donnell, but the interview notes from it can not be produced by the State Police.
Editor's Note: This story was originally published on Friday, August 25, 2017 at 5:30 p.m. And was updated at 4:30 a.m. on Saturday, August 26, 2017.
Editor's Note: Receiver informated GoLocal on Sunday, August 27, the number of retirees and future retirees impacted are approximately 3,000. He had previously told GoLocal tha the number was between 3,600 to 3,800.
Related Slideshow: Convicted Politicians Donations to Kilmartin
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