ABD, CBIZ receive subpoenas from Spitzer

Sally Roberts
Business Insurance
Posted on October 25, 2005

NEW YORK—New York Attorney General Eliot Spitzer's investigation into industry compensation practices appears to be picking up again.

Redwood City, Calif.-based ABD Insurance & Financial Services and Cleveland-based CBIZ Benefits & Insurance Services Inc. said they received subpoenas from the New York attorney general last week requesting information regarding their compensation practices.

In a Securities and Exchange Commission filing Tuesday, ABD parent Greater Bay Bancorp of East Palo Alto, Calif., said it is its understanding that its subpoena is part of Mr. Spitzer's broad review of the industry and that others in the industry have recently received subpoenas as well.

CBIZ Inc. noted in a statement that its insurance brokerage unit has not been named or referenced in any lawsuits stemming from any investigation and that it believes its compensation arrangements are appropriate and in compliance with all existing insurance industry laws and regulations.

ABD is the 15th-largest broker of U.S. business based on $133.4 million in 2004 brokerage revenues, while CBIZ is the 16th-largest brokerage with $128.9 million in 2004 brokerage revenues, according to Business Insurance's annual rankings (BI, July 18).

Both firms say they intend to cooperate with Mr. Spitzer's office.

Copyright © 2005 by Crain Communications Inc.

Click here to return to our homepage