[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]
Re: Lewis Insurer May Sue Celtics
The Celts won't beat the The Equitable Life Assurance Society, with this
fraud. Looks like the "mystical" Celtic management is in it up to it's
knees. Why would we be surprised management has been as deceitful as some
of it's players.
At 06:29 AM 7/15/99 -0400, you wrote:
>
>
> [The Boston Globe Online][Boston.com]
> [Boston Globe Online / Sports]
>
>
> Lewis's insurer may sue Celtics
>
> By Benjamin Lipson, Globe Correspondent,
> 07/15/99
>
> The issue of insurance fraud could
> take center stage in the Reggie
> Lewis saga as The Equitable Life Assurance
> Society of New York is ''looking into'' a
> lawsuit as an option to recover at least
> $5 million from the Celtics, who had
> purchased a policy on Lewis's life.
>
> Sworn depositions both presented and not
> presented at the trial, exhibits, and
> testimony alleging cocaine and marijuana
> use by the late Celtic star would be the
> cornerstones used by the insurance company
> to attempt to reclaim the money. When
> asked if her company was planning any
> action, Barbara Wilkoc, vice president of
> public relations for Equitable Life, wrote
> to the Globe via fax, ''We are looking
> into the matter and considering our
> options.''
>
> Efforts to reach Celtics chief operating
> officer Richard G. Pond for comment were
> unsuccessful last night.
>
> When Lewis died on July 27, 1993, The
> Equitable maintained $17 million of
> coverage, which was owned by the Celtics.
> On that date, $5 million of Equitable's
> coverage was less than two years old. A
> provision contained in all life insurance
> policies issued in Massachusetts prevents
> companies from denying death benefit
> claims on policies more than two years
> old, even if a material misrepresentation
> was made on the policy application. That
> would make $12 million uncontestable by
> Equitable and $5 million contestable.
>
> Within 30 days of Lewis's death, Equitable
> paid the Celtics $12 million as a death
> benefit under the policies on Lewis's life
> that listed the club as beneficiary. Of
> the remaining $5 million, The Equitable,
> in accordance with the terms of that
> policy, launched an investigation to
> determine whether any material
> misrepresentations or false statements
> were made on the applications. If an
> investigation uncovered any material
> misrepresentation or fraud, the claim
> could be denied.
>
> In February 1994, six months after a
> difficult investigation, The Equitable
> paid the additional $5 million to the
> Celtics. In July 1995, shortly after
> newspaper reports of alleged drug use by
> Lewis, the insurer started the second
> investigation of that $5 million policy.
> According to sources close to the case, on
> all Equitable applications for the $17
> million of life insurance coverage, the
> all-inclusive drug usage question was
> answered in the negative. On the Equitable
> insurance applications, there was a
> question about drug use during the 10
> years immediately preceding the
> application, a time frame that included
> Lewis's college career at Northeastern.
>
> In the second investigation, according to
> correspondence between The Equitable and
> the Celtics, the team was requested to
> provide a laundry list of documents that
> would have included records of drug
> testing or correspondence with the
> National Basketball Association concerning
> drug use.
>
> The Celtics informed the Equitable that
> since their only obligation was to provide
> information about Lewis's employment, they
> didn't have to provide personal data. They
> indicated that that was their final
> response.
>
> At the same time, the insurer was unable
> to obtain authorization from Donna
> Harris-Lewis to release Reggie's medical
> records. This second claims investigation,
> however, lacked subpoena power, which
> stymied its efforts.
>
> Attorneys representing Dr. Gilbert H.
> Mudge and two other physicians brought to
> trial earlier this year by Harris-Lewis,
> Reggie's widow, for malpractice did not
> lack that power, however.
>
> During the first week of the trial,
> Celtics team physician Dr. Arnold Scheller
> testified that he discussed the issue of
> drug testing with Lewis after Lewis was
> admitted to New England Baptist and had
> undergone a battery of tests by Scheller's
> ''Dream Team'' of physicians. Three hours
> after that discussion, Lewis checked out
> of the Baptist against medical advice.
>
> Had hospital records provided any insurer
> during a claims investigation for the $5
> million policy either contained a record
> of an order for a drug test or notes of
> any discussion Scheller had with Lewis
> about the subject, the insurer would
> likely have expanded its investigation.
>
> This story ran on page C7 of the Boston
> Globe on 07/15/99.
> © Copyright 1999 Globe Newspaper Company.
>
>
>
>
>