N.Y. Comptroller Drops Subpoena:

New York State Comptroller Alan Hevesi said he has withdrawn his subpoena of a state office that had refused to submit to an audit of its books. The state insurance department has agreed to participate in the first step of the audit of its liquidation bureau that employs 452 workers and handles the affairs of 64 companies with $3.4 billion in assets, according to a statement issued by the comptroller and the insurance department. The department and auditors will meet for an entrance conference where the scope and concerns about the review will be discussed. In March, the liquidation bureau that handles claims when an insurance company goes bust was subpoenaed for refusing to submit to a routine public agency audit by Hevesi. Insurance Superintendent Gregory Serio maintains the liquidation bureau is a private agency using private funds and not subject to public agency audits. State comptroller’s office auditors have examined the liquidation bureau’s books five times since the 1970s, until their auditors were refused access to records in February.

Topics New York