The State Ethics Commission issued subpoenas Wednesday to two Rome-based insurance companies under investigation for funneling money to Insurance Commissioner John Oxendine’s campaign for governor.
In the subpoenas, the commission demands that the State Mutual Insurance Company and the Admiral Life Insurance Company produce correspondence, documents, e-mails “or any other forms of communication” between company officials and 10 Alabama political action committees.
The subpoenas also requests banks records, including copies of checks, wire transfers and bank statements, regarding any payments made by the insurance companies to the PACs that gave a combined $120,000 to Oxendine’s campaign.
Georgia's Ethics-in-Government Act prohibits officials from taking money directly from companies they regulate. The law also prohibits funneling money through PACs to get around contribution limits of $12,200 per candidate in a normal election cycle.
Last year The Atlanta Journal-Constitution reported that the companies channeled almost 10 times the legal amount to Oxendine using the PACs.
The Alabama PACs were all set up by Donald V. Watkins, a board member of the two insurance companies. The companies are both headed by Delos Yancey III, a longtime friend and supporter of Oxendine. The PACs are all based out of Watkins’ bank, Alamerica, in Birmingham.
These new subpoenas come months after the Alabama PACs rejected similar commission subpoenas, arguing that the Georgia commission had no jurisdiction in Alabama. The commission asked Georgia Attorney General Thurbert Baker to try and get the records, or hire an Alabama attorney to do so.
Russ Willard, Baker's spokesman, said state attorneys are in the process of obtaining the records from the Alabama PACs.
Stacey Kalberman, the Georgia ethics commission’s executive secretary, said the commission is moving forward with its investigation “with the same speed as we would handle any other complaint.”
Josh Belinfante, attorney for the insurance companies, declined comment.
Oxendine campaign spokesman Stephen Puetz did not return calls for comment.
In May 2009, the AJC broke the story that State Mutual and Admiral Life sent checks to the 10 PACS, and the PACs then sent the money to Oxendine’s campaign. The money was sent from all the PACs in the same amounts on the same dates. At the time, Oxendine said, "I had no knowledge it came from an insurance company."
After the first AJC story, Oxendine's campaign returned the money and the State Ethics Commission opened an investigation.
Yancey, whom Oxendine describes as a friend, is a major player in the insurance industry. Oxendine and Yancey often spend time together. Oxendine has gone on hunting trips as Yancey's guest. In January, Oxendine's stepson made headlines when he accidentally shot a man in a hunting accident. The accident occurred on Yancey's quail preserve in north Georgia, where Oxendine and his family were spending a long weekend.
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