Insurance Company assets auctioned - WALB.com, South Georgia News, Weather, Sports

Insurance Company assets auctioned

M. Clark Fain, III M. Clark Fain, III

By Christian Jennings - bio | email

Donalsonville,  GA (WALB) –  A huge auction in Seminole County Tuesday to recover money from an insurance company shut down by the state.

Southeastern U.S. Insurance provided worker's comp coverage for hundreds of clients including dozens of towns and school boards in South Georgia. But a suspicious expenditure by the owner, a $10 million loan to himself triggered an investigation by the insurance commissioner. That led to the auction.

That $10 million transaction you mentioned was supposed to be pre-approved by Insurance Commissioner John Oxendine. But it wasn't. That started the investigation, the eventual collapse of the company, and thousands of hurt workers left with a hefty medical bill and no insurance.

More than 600 people bid on tractors, high-end furniture and pick up trucks in Donalsonville Tuesday.

All former assets of the Southeastern U.S. Insurance Company or 'SEUS.' an Atlanta based company that specializes in Workman's Comp claims.

"We are trying to get as much money as possible, because I need the cash so I can take care of those injured workers and pay for medical bills," said Insurance Commissioner John Oxendine.

He says the probe began because of a questionable deal made by the company's CEO, Clark Fain III of Donalsonville.

"$10 million of the company was illegally invested in a quail farm and hunting preserve in Southwest Georgia," said  Oxendine.

A judge signed the court-ordered liquidation of SEUS on October 27th. Leaving dozens of local government agencies throughout Georgia without workers' compensation.

"School boards, local municipalities are not going to be covered and they have lots of injured workers and that will unfortunately fall back on them," said  Oxendine.

SEUS has more than 700 Employers. The city of Leesburg, the Cook County Board of Education, and ProSouth Logistics, Inc. in Albany are only a few of the dozens of southwest Georgia companies affected.

Now the Insurance Commissioner is looking to press charges.

"We are pursuing criminal options and possibly criminal options," he said.

On a positive note the auction turnout was much larger than expected. Hundreds of thousands of dollars raised to pay for consumer claims.

The Insurance Commissioner says Southeastern U.S. and some of its officers filed fraudulent financial statements with the Commissioner's office.

As for the clients, The Georgia Insurers Insolvency Pool will cover those with a net worth of $25 million or less.

We talked with leaders in Sylvester and Leesburg late Tuesday. They told us they rushed to get new worker's comp insurance when the insurance commissioner notified them that SEUS was going out of business. They were never without coverage.

  • Click HERE to see an EXCEL file listing the policy holders affected by the SEUS

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