Ex-Beacon Mutual VP Faces New Rhode Island Indictment

December 22, 2008

A former vice president at Rhode Island’s dominant workers’ compensation insurer, who was indicted two years ago for conspiracy and insurance fraud, is facing a new indictment.

David R. Clark, the former vice president for loss prevention and underwriting at Beacon Mutual Insurance Co., was indicted Wednesday by a grand jury on a single count of insurance fraud.

He is accused of failing to disclose to the state Department of Business Regulation that more than a dozen companies were receiving discounted premiums to which they were not entitled. The companies are not accused of any wrongdoing, said Attorney General Patrick Lynch.

The 59-year-old Clark was first indicted in October 2006 on five felony counts.

Lynch spokesman Michael Healey said Thursday that prosecutors sought a new indictment to streamline their case against Clark and drop overlapping charges.

Clark’s lawyer, Thomas Briody, said his client looked forward to clearing his name.

“We continue to maintain that Mr. Clark has committed no crime,” Briody said. “The state’s new indictment does nothing to change the facts that surround this investigation.”

Beacon Mutual is a nonprofit independent corporation created by the state to provide workers’ compensation insurance to employers.

The indictment was part of a wider probe of Beacon and its practices. A 2006 committee report said Beacon gave improper price breaks to certain companies that hurt other policyholders.

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