A hearings officer has ruled the Local Government Center must refund more than $50 million to its clients – New Hampshire cities and towns.
The administrative hearing officer agreed with state regulators that the Local Government Center held on to too much money in reserve and improperly funneled money from one line of business to another. Andru Volinksy – the attorney representing the New Hampshire Bureau of Securities Regulation – says LGC officials violated the public trust.
“These folks seriously lost their way. And at the end of the day they ignored the legislation that said run this as efficiently and effectively as possible.”
The Local Government Center continues to defend its level of reserve as a fiscally prudent and conservative way to run its business.
LGC’s attorney Bill Saturley says he’s pleased all securities-related charges against his client were dropped. But given the magnitude of the ruling, he expects LGC to appeal.
“It certainly is likely that we will be asking for some review of the result of this order.”
That’s sad news to head of the New Hampshire Firefighter’s Union Dave Lang.
For years, Lang has urged state officials to investigate LGC’s practices. He thinks LGC should do what the other so-called 5-B groups do and return money to cities and towns. But the union chief says he’s worried the court battles will continue.“Spending more taxpayer money, spending more employee money, spending more retiree money that should be directed to the cost of healthcare. That saddens me. And it worries me. And I don’t think it’s fair.”LGC has 30 days to seek reconsideration on the administrative court ruling.