Monday, May 23, 2011

USAA Crooked insurance
Tracy Shue and her family are offering a $50,000 reward for information leading to the arrest and conviction of those responsible for her husband's abduction and torture.
"Hopefully that amount of money will result in someone coming forward with what they know," Mrs. Shue said.
Anyone having information is asked to call (800) 848-8500
When did the Widow Shue abruptly shift gears and stop talking to Was it after the Cyril Wecht autopsy result arrived in April 2004 and we were the last to know?  Already, we'd noted uneasily there was no more talk like: "I'm determined to find who killed my husband."  Why, there was almost no talk about Philip Shue at all.  But there was plenty said about mounting a huge lawsuit against the deep-pockets USAA Insurance Company of San Antonio, Texas.  Winning that one would mean the two million bucks she'd already realized from her husband's tragic demise would be "chump change" indeed.

Phil Shue tried canceling the policy, but the insurance company told him he couldn't.

"They told him that she owned the policy. And therefore she had total authority over that policy. They could not cancel it," Tracy says.

Tracy says her husband feared for his life. "That fear never left him; he didn't know what to do. He felt that he tried everything - every avenue to try and address this, including his ex-wife. And it was a brick wall. He couldn't control it."
Legal structure
One of the characteristics that allows USAA to operate differently than almost every other Fortune 500 company is that it is not a corporation. The parent company, United Services Automobile Association is an inter-insurance exchange, the establishment of which is provided for under the Texas Insurance Code.[28] This insurance exchange is made up of current and former military officers and NCOs who have taken out P&C policies with USAA; thus they simultaneously are insured by each other and, as a group, own USAA's assets. Theoretically, this implies that each member could be held completely responsible for all the losses of all the other members. However, the insurance code (Sec 942.142) stipulates that should an entity such as USAA accrue a substantial amount of assets, member liability is limited only to the premiums they have paid to USAA. In other words, if an enormous disaster were to result in claims that would wipe out all the assets of USAA, individual members could not legally be called upon to pay for any amount USAA is unable to pay out in claims.
Other insurance services are provided by a variety of wholly owned subsidiaries. Adult children of USAA members and U.S. military junior enlisted personnel make up a group known at USAA as "associate members" insured through a subsidiary called USAA-Casualty Insurance Company (USAA-CIC). USAA-CIC is not an insurance exchange but rather a Delaware Insurance Corporation. This is a subtle nuance but is important concerning the return of profits - described below. Non-standard-risk drivers are insured by subsidiaries like USAA's County Mutual Insurance Company or USAA-General Indemnity Company. USAA also insures members in Europe through its subsidiary, USAA Limited. It is uncommon for a U.S. based insurance company to provide international P&C coverage, but USAA does so because so many military families are stationed out-of-country.
Hansford T. (H.T.) Johnson

Acting Secretary of the Navy1000 Navy PentagonWashington, D.C. 20350-1000Mr. Johnson was nominated on August 3, 2001, by President George W. Bush to serve as the Assistant Secretary of the Navy (Installations and Environment) and was sworn in on August 7, 2001. The President directed him to assume the duties as the Acting Secretary of the Navy on February 7, 2003. The Secretary of the Navy leads the Department of the Navy consisting of 383,000 active duty and 89,000 Reserve Sailors; 172,000 active duty and 40,000 Reserve Marines; and 186,000 civilians. It includes 308 warships, 4,100 aircraft, and an annual budget of over $110 billion.Prior to his nomination to serve in the Bush-Cheney administration, Mr. Johnson served as Executive Vice President and Chief Operating Officer of the Credit Union National Association (CUNA) in Madison, Wisconsin. He also served as President and CEO of EG&G Technical Service and later of EG&G when purchased by The Carlyle Group. Previously, Mr. Johnson joined USAA Capital Corporation, part of one of the largest and most successful financial services organizations in America. He was responsible for providing non-insurance services to USAA members through the USAA Federal Savings Bank (selected as the best bank in America by Money Magazine), the USAA Investment Management Company, the USAA Real Estate Company, and USAA Buying Service. These companies managed $13 billion in USAA insurance portfolios, over $16 billion in mutual funds, a $10 billion bank, and $1 billion in real estate holdings. While at USAA, President George H. W. Bush appointed him to the 1993 Base Realignment and Closure Commission.
Johnson is once again back in the private sector, this time working with his former undersecretary Douglas Combs. Their company, Windmill International Ltd., , bought out contracts issued to a firm so corrupt, the military banned it. That firm, Custer Battles LLC, has been sued twice by whistleblowers, who say that while employees committed atrocities like shooting at unarmed civilians, its executives were bilking the government of up to $50 million.

Now, Johnson stands accused, with Combs, of helping Custer Battles get around the military ban and win new Iraq contracts. A whistleblower accused Johnson and Combs of fraud in a federal lawsuit.,and as of late 2007,the Justice Department was conducting a criminal investigation.

Johnson served for more than 30 years in the Air Force, including a stint as a combat pilot in the Vietnam War. He retired in 1992 at the end of the Persian Gulf war and, after a stint as an Executive Vice President of the Credit Union National Association, he joined EG&G Technical Services as its CEO. EG&G at the time was an independent company that provided engineering services to agencies like NASA and made products like sensors and electronics for the Department of Defense, among others.

While Johnson was EG&G’s CEO, the firm was acquired by the Carlyle Group, a behemoth investment firm whose executives and investors include former President George H.W. Bush, former Secretary of State James Baker III, and the royal family of Saudi Arabia. Carlyle piad $250 million for EG&G, then sold it three years later in 2002 for double that price.
The probe of Douglas Combs, who served as a special assistant to then-acting Secretary of the Navy Hansford Johnson in 2003, stems from a series of probes into Custer Battles LLC.

The probe may mark the first time a former high-ranking Pentagon official has been linked to the recent wave of government-contracting scandals.

In March, a federal jury found Custer Battles guilty of using sham companies and fake invoices to bilk the government out of millions of dollars related to its work in Iraq, and ordered it to pay fines and restitution totaling $10 million. It was the first time that an American contractor had been found guilty of fraud in Iraq.
Two former Pentagon officials, including an acting secretary of the Navy, have been accused of scheming with a banned American contractor to get lucrative rebuilding contracts in Iraq, The Associated Press has learned.

The contracting firm, Custer Battles LLC, was suspended two years ago by the military for submitting millions of dollars in fake invoices.

The charges come in a sealed federal lawsuit, a copy of which was obtained by The AP. It was filed by two whistleblowers - one of whom won a $10 million judgment in another suit when a federal jury agreed that Custer Battles had swindled the government.

The current suit names former acting Navy Secretary Hansford T. Johnson, former acting Navy Undersecretary Douglas Combs, and Custer Battles LLC officials including founders Scott Custer and Mike Battles, who were barred in 2004 after billing the government for work that was never done and for padding invoices by much as 100 percent.

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