Judge Slams Kilmartin for Delaying Release of Documents in St. Joseph Pension Fund Collapse
Thursday, November 30, 2017
An effort by Rhode Island Attorney General Peter Kilmartin to block the release of critical documents tied to the Attorney General’s review of the merger between CharterCARE and Prospect was slapped down by Judge Brian Stern on Wednesday at a hearing in Providence Superior Court. Special investigator Max Wistow blistered Kilmartin for the delay in providing key documents. And, Wistow laid out that he believed Kilmartin lacked the understanding of the key issues relating to the 2014 merger.
Kilmartin tried to quash many elements of a subpoena issued by Wistow looking into the failure of St. Joseph Health Services pension fund. The subpoena was issued to Kilmartin on November 3, and to date lawyers in the Attorney General’s office admitted before Judge Brian Stern that they have yet to provide one single document.
Latest Hearing
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St. Joseph is the largest pension fund collapse in Rhode Island history, as approximately 2,800 are facing a cut to their pensions of as much as 40 percent.
In court Wednesday, Wistow pounded the Attorney General for saying one thing and then doing another. Wistow repeatedly read from a statement issued by Kilmartin and published in GoLocal just days after the pension fund was forced into receivership.
“I am very concerned and have many questions as to how the pension fund could be insolvent just three years after being funded at 90 percent. While the Attorney General's Office is not directly or indirectly involved with the management of the pension fund, we have engaged with counsel for the Petitioner and the Court-appointed receiver, and will be closely monitoring the legal process, and assessing where we have legal standing to intervene,” said Kilmartin in his statement in August.
Wistow read another portion of Kilmartin’s statement, “These retirees deserve to know how this happened and what is being done to protect their investment. I urge the receiver of the pension fund and the Court to establish and maintain complete transparency throughout this process, and to consider every available option to regain financial viability of the pension fund.”
He then bristled at the delaying tactics and multiple motions Kilmartin has filled — which are delaying the process and the ability to recover funds for the retirees. The Attorney General's office represented by Assistant Attorney General Kathryn Enright and Special Assistant Jessica Rider. The two had filed the motions pressing to limit Wistow's request for documents.
“No Understanding of the Transaction”
Wistow said that Kilmartin has no fundamental understanding of the key transaction between both CharterCARE in 2014 when it was acquired by Prospect.
“It is frightening it is how little...the AG understands the transaction,” said Wistow.
Wistow charged that Kilmartin “misled or concealed” when rendering his approval of the decision to allow the companies to merge under the Hospital Conversion Act.
But the harshest words at the hearing came from Chris Callaci, the lawyer for the United Nurses and Allied Professionals (UNAP). He spoke in favor of Wistow's motion to compel the Attorney General to release documents.
In a statement before Judge Stern, Callaci said he was “troubled by the non-cooperation” by Kilmartin. He claimed Kilmartin was “impairing” the investigation and was deeply disturbed that the most basic public documents had not been turned over for the investigation.
Stern Set Timeline
In a decision issued from the bench, Stern instructed the Attorney General and Wistow to immediately meet with their technology experts to identify a process for transferring records. Stern also instructed the Attorney General to have all documents to Wistow by January 15.
Related Slideshow: 10 Things to Know About One of Biggest Pension Failures in RI - St. Joseph Receivership
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