The State Ethics Commission is sending letters to Rome-based State Mutual Insurance and its affiliate Admiral Life Insurance Co. of America renewing its demand for information about large contributions to the gubernatorial campaign of Insurance Commissioner John Oxendine.
Fulton County Superior Court Judge Kimberly M. Esmond Adams denied the companies’ bid for a temporary restraining order to block enforcement of subpoenas issued by the ethics commission. The subpoenas seek information regarding the relationship between the insurance companies and 10 Alabama-based political action committees.
“It was the right thing to do,” said Stacey Kalberman, executive director of the State Ethics Commission, of Adams’ order that was issued Friday.
A spokesman for State Mutual was less enthusiastic.
“Obviously we are extremely disappointed in the court’s order, and our attorneys are studying the order and evaluating our options,” said Charles Russell.
In its request to block the subpoenas, State Mutual claimed the ethics investigation is politically motivated. “Anybody can make a claim of political bias,” said Kalberman.
Late in 2008, State Mutual contributed $20,000 to the PACs while Admiral Life contributed $140,000 to those same PACs. The PACs, in turn, distributed $120,000 to Oxendine’s gubernatorial campaign.
Roman George Anderson’s Ethics in Government Group filed a complaint regarding the contributions in May 2009, and Oxendine promptly returned the funds.
The State Ethics Commission initiated an investigation into the propriety of the contributions in October 2009, and then in May 2010 issued subpoenas to the insurance companies asking for records of all communications between the two insurance companies and officials with Alamerica Bank in Alabama, Donald V. Watkins Sr., Donald V. Watkins Jr. and the PACs.
Watkins Jr. chairs all 10 of the PACs. His father serves on the Board of Directors of State Mutual Insurance and is the founder and principal executive with Alamerica Bank.
“We’re getting letters to the insurance companies this morning (Monday) asking them for the information,” Kalberman said. “How quickly the Ethics Commission can schedule a hearing will depend on how quickly State Mutual and Admiral Life respond to the subpoenas.”