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05 February 2010

Democrat Teilhet Served As Legal Counsel For Failed Insurance Co.

The lingering stench coming from the collapse of a large, Georgia-based insurance company has now drifted over the campaign of a candidate for Attorney General.

Southeastern U.S. Insurance (SEUS), which once boasted being the state's eighth largest workers' compensation insurer, went under last year after an investigation by the State Insurance Commissioner showed questionable Enron-like accounting practices that saw the company inflating its assets while dramatically understating liabilities [Ginsberg, Jodi (2010-1-18). Business Practices of Georgia Workers’ Comp Company Compared to Enron. Georgia Workers Compensation blog. Retrieved on 2010-2-5.]. The SEUS investigation was triggered by a $10 million loan from the company to its CEO, M. Clark Fain, III [Sepulvado, John and Green, Emily (2009-11-9). GA Insurer Loaned $10 Million to CEO Before Being Liquidated. Georgia Public Broadcasting. Retrieved on 2010-2-5.].

State Rep. Rob Teilhet (D - Smyrna), a Democratic candidate for Attorney General, served as the failed company's corporate legal counsel between 2006 and 2008 [SOURCE: Rob Teilhet Campaign Web Site]. The next year, the assets of SEUS were placed into liquidation by a Fulton County judge [Atlanta Business Chroncicle (2009-10-26). Southeastern U.S. Insurance liquidated. Atlanta Business Chronicle. Retrieved on 2010-2-5.].

According to the Georgia Municipal Association, the collapse of SEUS left 49 cities --including the south Georgia city of Arlington-- without workers' compensation insurance coverage [Jennings, Christian (2009-12-30). Arlington city clerk comments on Southeastern U.S. Insurance. WALB-TV. Retrieved on 2010-2-5.].

The lengths of Teilhet's involvement with SEUS' business practices has yet to be revealed. However, it is extremely important for the Cobb County Democrat to fully disclose what he knew and when he knew it about SEUS as voters begin considering candidates for public office.