King Denies Role, but Letter from Governor Says Otherwise
Wednesday, June 23, 2010
After a GoLocalProv investigation uncovered the deal, King, who is now running for General Treasurer, claimed yesterday that a state agency selected his friend’s firm, the Boston-based K&L Gates. “Resource Recovery Corporation selected K&L Gates to represent it in pursuing a claim under one of its insurance policies,” his campaign said.
State records, however, say otherwise.
In fact it was Gov. Donald Carcieri who authorized the hiring in a Feb. 2, 2010 letter he sent to the Rhode Island Resource Recovery Corporation (see below).
As his chief legal counsel at the time, King previously told GoLocalProv that he not only did he recommend the firm to Carcieri but he also negotiated its fee.
A lead attorney in that case, Thomas F. Holt, Jr., is friends with King, plays golf with him at the exclusive Point Judith Country Club in Narragansett, and gave him $1,000 in 2005 when he was running for lieutenant governor.
In his statement, King said K&L Gates got a good deal for the state.
“The taxpayers of the state have benefited from K&L Gates' expertise as it achieved a successful multi-million dollar insurance settlement to help reimburse for the shenanigans and mischief which occurred at the landfill for many years,” he said.
K&L Gates won $5 million in the insurance settlement with the RSUI Indemnity Corporation earlier this month—but the firm pocketed 30 percent, or $1.5 million, of that total, leaving $3.5 million for taxpayers. The money was just a small fraction of the estimated $75 million that had been wasted in the management of the state landfill by the former commissioners and some employees at Resource Recovery.
King told GoLocalProv that he believes he did nothing wrong.
A spokeswoman for Carcieri also said there was no wrongdoing. The state chose K&L Gates because it had “extensive experience” in insurance cases, according to Amy Kempe. “K&L Gates has a proven track record in this area,” Kempe said. “That is the reason they were chosen. That is the only reason they were chosen.”
Several government watchdog groups, however, said King should have recused himself from what they said appeared to be a conflict of interest.
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