ULLICO Inc., the insurer owned by union pension funds, has reached a $13-million settlement with Robert A. Georgine, its former CEO and longtime president of the AFL-CIO Building and Construction Trades Dept.
The insurer forced out Georgine in 2003 after a scandal erupted over an insider stock-trading scheme involving Georgine and other directors. An independent investigator in 2003 found that Georgine had breached his fiduciary duties to ULLICO by self-dealing in ULLICO stock and recommended the company get the profits back. ULLICO then sued Georgine and the directors. Several building trades presidents were forced to pay back their profits.