Harmon's Request to Hawaii Atty General for Investgation of Marsh & McLennan, Zurich, others

Bobby N. Harmon, CPCU, ARM

May 17, 2007

VIA fax @ (808) 586-1239

and e-mail: hawaiiag@hawaii.gov

Mark Bennett, Attorney General

State of Hawaii

425 Queen Street

Honolulu, Hawaii 96813

RE: CV05-00030 - Office of the United States Trustee vs Bobby N. Harmon

Request for Criminal Investigation into Alleged Racketeering Activities

Marsh & McLennan, Inc., Chubb Group, PricewaterhouseCoopers, Kamehameha Schools, Prudential, Zurich Financial and others; and

Request for Enforcement of Hawaii Revised Statutes Vol. 13, Chap. 634F

Dear Attorney General Bennett:

This is to advise you that I have not received a response to my letter dated April 25, 2007, in which I stated:

“This is a follow-up request regarding my letters of December 10, 2004, May 5, 2005, May 24, 2005, and June 24, 2005, in which I wrote to your office requesting a criminal investigation into the activities of a number of companies doing business in the State of Hawaii. As I stated in my May 5, 2005 letter, several other states have already brought action and settled claims in the hundreds of millions of dollars against these companies for fraud, bid-rigging, price-fixing, kick-backs and other illegal practices, while your office has apparently done nothing to assist the victims in Hawaii.

“Subsequent to my letter of June 24, 2005, the following online news article dated March 27, 2006, appeared in Forbes.com:

Thousands of companies and governments nationwide that bought insurance through a broker expecting the lowest rates will share in the proceeds from a $153 million settlement of a bid-rigging scheme involving Zurich American Insurance Co.

The victims, which include small, mom-and-pop retailers, school districts, governments and large corporations, will receive $88 million, said New York Attorney General Eliot Spitzer, who led the investigation and announced the settlement Monday.

Zurich American, a subsidiary of Switzerland's Zurich Financial Services, also agreed to pay penalties and costs of the investigation to the three states in the settlement: $39 million to New York, and $13 million each to Connecticut and Illinois.

Zurich, which admitted no wrongdoing in agreeing to the settlement, will also adopt reforms. Among them will be an end to "contingent commissions" in excess casualty insurance, the line of business that Spitzer said involved bid-rigging. Zurich will also stop paying contingent commissions on other products if 65 percent of the industry drops the fees that Spitzer said can cause conflicts of interest that hurt consumers.

Zurich will also disclose more about its transactions.

"With our significantly enhanced compliance structure, and our companywide commitment to ethical behavior and outstanding service, we have in place standards that promote the best interests of our customers, agents, brokers and Zurich," said Zurich Financial CEO James Schiro.

The settlement is part of Spitzer's investigation of Marsh & McLennan Companies Inc., the nation's largest property and casualty brokerage. Marsh settled with Spitzer last year for $850 million over allegations of bid rigging and price fixing as well as hidden commissions.

Zurich was one of the companies Spitzer and state Insurance Superintendent Howard Mills accused of participating in an insurance bid-rigging scheme that used phony bids to fool customers into choosing a pre-determined company within the scheme. The scheme eventually provided all participants with steered contracts and prices not determined by a free market.

"Zurich's willingness to acknowledge problems, adopt reforms and provide appropriate compensation to customers will help the company move forward to help promote full and fair competition in the insurance industry," Spitzer said.

Spitzer said Zurich was among a few companies that would submit bogus high bids to help steer some contract to one company and could expect to have the same done for them.

In announcing the settlement, Spitzer cited an e-mail from a Marsh broker to a Zurich underwriter seeking a phony bid for an insurance contract that Spitzer said was being steered to American International Group Inc. The e-mail included: "Can you give me a protective indication on this. It is an AIG renewal and AIG already quoted it so just give me a bad price with higher per occ. attachment and then we can be done with this."

Spitzer said Zurich provided the phony quote in the deception of a Marsh customer.

"Our investigation revealed that Zurich schemed with insurance brokers and other insurers to rig bids, behavior that led policyholders to pay more for insurance," said Illinois Attorney General Lisa Madigan. "Zurich also secretly paid contingent commissions to brokers in exchange for the brokers steering business to Zurich."

Earlier this month, Zurich agreed to pay nearly $172 million in a separate deal with nine states to settle allegations of bid-rigging and price-fixing in the commercial insurance market. Policyholders in 50 states will receive $151.7 million in refunds in the settlement with California, Florida, Hawaii, Maryland, Massachusetts, Oregon, Pennsylvania, Texas and West Virginia. Those nine states will get an additional $20 million for investigative and attorney costs.

"The agreements concluded within the last two weeks represent significant progress in Zurich's efforts to resolve the uncertainty associated with certain industrywide practices," said Zurich CEO Schiro. "This industry, like others before it, is undergoing a transformation, and these agreements will bring greater clarity to how Zurich will move forward to serve producers and customers in this new era of transparency."

“As you know, Zurich American is one of the many entities that is involved in the subject litigation. In the interests of the citizens of the State of Hawaii in this “new era of transparency,” I am requesting information regarding any and all settlement negotiations which took place between your office and Zurich American, as well as with Marsh & McLennan, Aon, American International Group (AIG), Chubb Group, Royal SunAmerica, and any other company involved in these alleged fraudulent and illegal transactions that I have repeatedly asked you to investigate and bring action. I am particularly interested in the names of all involved entities, and their attorneys, who were parties to these negotiations. If this is public information, would you please advise how I may go about obtaining copies of these documents. If this information can be found in the PACER system, would you please advise me of Case Number so I can query these documents via the Internet.

“Copies of my previous letters, and additional related information regarding these involved entities were previously posted at the following Internet addresses:

www.the-catbird-seat.net/Claim-Hawaii-AG-12-10-4.htm

www.the-catbird-seat.net/Claim-Hawaii-AG-5-5-5.htm

www.the-catbird-seat.net/Claim-Hawaii-AG-5-24-5.htm

www.the-catbird-seat.net/Claim-Hawaii-AG-6-24-5.htm

www.the-catbird-seat.net/Claims-Branch-AttorneyGeneral.htm

www.the-catbird-seat.net/MarshBirds.htm

www.the-catbird-seat.net/Aon.htm

www.the-catbird-seat.net/ChubbGroup.htm

www.the-catbird-seat.net/Royal-SunAlliance.htm

www.the-catbird-seat.net/XL.htm

www.the-catbird-seat.net/Zurich.htm

www.the-catbird-seat.net/RICO-BH.htm

www.the-catbird-seat.net/Broken-Trust-Book.htm

www.the-catbird-seat.net/OUST-vs-Harmon.htm

“However, as a result of the shutdown of my website at the demand of the United States Department of Justice, Alberto Gonzales, U.S. Attorney General, and the Office of the United States Trustee, James B. Nicholson, Trustee, by Order of Judge David A. Ezra (ref. PACER Document No. 96, filed 03/13/2007), the above links are no longer applicable. Therefore, I am attaching copies of these, and related, documents to my e-mail transmittal of this letter.

“Also, I am hereby requesting that your office take immediate action against the United States Department of Justice, Office of the United States Trustee, and James B. Nicholson, Trustee, to enforce Hawaii’s Anti-SLAPP statute [L 2002, c 187] as it relates to the referenced lawsuit. This statute is clearly applicable in this case according to the definition of a “SLAPP” action:

... "SLAPP" means a strategic lawsuit against public participation and refers to a lawsuit that lacks substantial justification or is interposed for delay or harassment and that is solely based on the party's public participation before a governmental body. [L 2002, c 187, pt of §2]. The complete statute can be found at: http://www.casp.net/hi-634.html .

“Your immediate action in response to this letter is respectfully requested.”

Unfortunately, due to the fact that the United States Department of Justice obtained an Order from Judge David A. Ezra to SHUT DOWN the website, www.the-catbird-seat.net, the above links provided to you for your criminal investigation into this matter are not operative at this time. Therefore, I am providing you the following NEW links for these, and related, documents:

http://67.15.255.19/~thecatbi/Claim-Hawaii-AG-12-10-4.htm

http://67.15.255.19/~thecatbi/Claim-Hawaii-AG-5-5-5.htm

http://67.15.255.19/~thecatbi/Claim-Hawaii-AG-5-24-5.htm

http://67.15.255.19/~thecatbi/Claim-Hawaii-AG-6-24-5.htm

http://67.15.255.19/~thecatbi/Claims-Branch-AttorneyGeneral.htm

http://67.15.255.19/~thecatbi/MarshBirds.htm

http://67.15.255.19/~thecatbi/Aon.htm

http://67.15.255.19/~thecatbi/ChubbGroup.htm

http://67.15.255.19/~thecatbi/Royal-SunAlliance.htm

http://67.15.255.19/~thecatbi/XL.htm

http://67.15.255.19/~thecatbi/Zurich.htm

http://67.15.255.19/~thecatbi/RICO-BH.htm

http://67.15.255.19/~thecatbi/Broken-Trust-Book.htm

http://67.15.255.19/~thecatbi/OUST-vs-Harmon.htm

http://67.15.255.19/~thecatbi/SLAPP.htm

http://67.15.255.19/~thecatbi/Confessions.htm

http://67.15.255.19/~thecatbi/Whistler.htm

http://67.15.255.19/~thecatbi/Whistleblowers.htm

http://67.15.255.19/~thecatbi/

http://67.15.255.19/~thecatbi/CV05-00030-Witness-Bennett-Mark.htm
http://67.15.255.19/~thecatbi/CV05-00030-Witness-Ezra-David.htm
http://67.15.255.19/~thecatbi/CV05-00030-Witness-Chang-Kevin.htm
http://67.15.255.19/~thecatbi/CV05-00030-Witness-Hifo-Eden.htm
http://67.15.255.19/~thecatbi/CV05-00030-Witness-Kurren-Barry.htm
http://67.15.255.19/~thecatbi/CV05-00030-Witness-Index.htm
http://67.15.255.19/~thecatbi/CV05-00030-Exhibits.htm
http://67.15.255.19/~thecatbi/JUSTICE.htm
www.voy.com/129276/

I respectfully request that you immediately acknowledge receipt of this letter, and inform me as soon as possible as to what actions you have taken thus far in your criminal investigations.

Thank you for your cooperation.

Very truly yours,

Bobby N. Harmon, CPCU, ARM

cc: Hugh Jones, Dorothy Sellers, and Lawrence Goya,

Office of the Attorney General, c/o Hugh Jones (hugh.r.jones@hawaii.gov)

Alberto Gonzales, U.S. Attorney General (AskDOJ@usdoj.gov)

Curtis B. Ching, Office of the U.S. Trustee (info@hib.uscourts.gov)

James B. Nicholson, Trustee (jamesbnicholson@aol.com)

Steven Guttman, Esq, Kessner Duca.... (sguttman@kdubm.com)

Judge David A. Ezra (theresa_lam@hid.uscourts.gov)

Senator Patrick Leahy (senator_leahy@leahy.senate.gov)

Senator Dan Inouye (senator@inouye.senate.gov)