Selectman cleared of any ethics issues

Sept. 28--ANDOVER -- Selectman Bob Landry said he has become the victim of a "political attack" by the teacher's union for his role in trying to save taxpayers nearly $1 million by switching health insurance plans.

Since he was elected nearly six months ago, he has withstood at least two state ethics challenges from the Andover Education Association, the union representing the town's 825 teachers and school workers.

Shortly after Landry was elected to the Board of Selectmen in March, Kerry Costello, president of the AEA, went before the Board of Selectmen and asked that the state Ethics Commission issue a ruling on whether Landry, a health insurance broker, should be allowed to negotiate health insurance contracts.

The state Ethics Commission said he could.

Last month, in a more formal request, Costello wrote the Ethics Commission asking for an "investigation and issue a formal opinion" into whether Landry should be allowed to negotiate health insurance contracts for the town because he is a health insurance broker.

Landry said that even though the state Ethics Commission has ruled twice there is no conflict, the AEA continues going after him.

"In my view, the AEA's complaint to the Ethics Commission was nothing more than a political attack," he said.

Costello said that even though the Ethics Commission has cleared Landry, the issue is still very much alive.

"That's where it stands," she said. "It doesn't mean it will automatically close the gate on a topic. It's an additional component or variable by an objective third party. It think it's a reasonable public perception that should be vetted. On the other hand, how would any of us know if he did get any kind of bonus from them? I'll take a person at their word until there's concrete data otherwise."

Landry retorted, "she's trying to create the appearance of impropriety when there is none."

Voluntary ruling

According to a timeline of events compiled by Landry, he met with Town Counsel Tom Urbelis just a couple of days after he was elected to find out what kind of disclosures he needed to make regarding his business.

Urbelis suggested he contact the Ethics Commission.

On March 27, he called and left a message with an attorney at the commission.

On March 30, Costello went before the Board of Selectmen and publicly stated that Landry, an insurance broker, "could be considered as having a conflict of interest," according to minutes of the meeting. "In the interest of transparency she is asking for a decision from the State Ethics Committee."

At the meeting, Landry said he is an employee benefits broker and has met with town counsel who suggested he check with the State Ethics Commission. Landry said he is paid commissions from various health insurance companies. "In his view, there is no conflict and no opportunity for financial gains and he is waiting to hear back from the State Ethics Committee," according to the minutes.

On March 31, Landry sent a letter to the Ethics Commission explaining what he does professionally and what his role would be as a selectman. He argued he has no potential for financial gain by working as a health insurance broker while also negotiating health insurance contracts on behalf of the town because he works on commission.

"The commission compensation I receive from each insurer is based solely on the clients I have placed with them," he wrote. "I receive only standard commissions from all insurers. ... Also, if one argued I may garner favor from the selected insurer, that would also mean I would lose favor with the other insurers where I also have business."

He then worked with a state Ethics Commission attorney on how to fill out the "Disclosure of Appearance of Conflict of Interest" form, as required by state law. The form was filed with the town clerk's office in early April.

In it, he goes over much of the same ground as in his letter, stating that he has "never had and will never have any financial interest, whatsoever, in any of the town of Andover's insurance plans, including health insurance."

Landry said he thought that would be the end of it.

AEA letter

But that was not to be.

In early August, Costello issued a more formal request for an "investigation" in whether Landry's business and public dealings may represent a conflict of interest.

In an Aug. 6 letter to the Ethics Commission, Costello wrote: "We believe Mr. Landry has either a real or a very strong potential for conflict of interest violation because of his past attempts to influence the Town of Andover's decision to move from Blue Cross Blue Shield to Tufts Health Plan for the provision of employee and retiree health insurance benefits. Mr. Landry receives brokerage commissions from various insurance providers, including Tufts Health Plan."

She went on to write that in 2014, Landry advocated for the town to switch from Blue Cross to Tufts "under the guise of savings to the taxpayers. We believe he may have been in contact with one or more of the Tufts sales representatives who were in active negotiations with town officials at the time."

She went on to write that Landry "then tried to influence the voters at the May 2014 Town Meeting to underfund the health insurance budget appropriation, apparently as a way to force the town to move to Tufts, even after it had already made the decision to stay with Blue Cross/Blue Shield."

She said she believed that if Landry had been successful, he may have received "some sort of direct or indirect benefit" from getting the town to move to Tufts.

"The town would have represented a very lucrative $20 million per year contract for Tufts," she wrote. "We believe Landry would have received some sort of preferential or special treatment by Tufts in future dealings..."

She said that now that Landry is an elected official, having been voted into office in March 2015, he has sought clearance from the Ethics Commission, and has "summarily declared that he had no conflict of interest as a private insurance broker."

However, she states, Landry has taken an "active role" in health insurance negotiations and has "participated in closed-door Board of Selectmen executive sessions on collective bargaining and health insurance strategy."

No further action

In an Aug. 19 letter from the Ethics Commission to Landry, the deputy chief of investigations with the department wrote that his case had been reviewed and discussed and terminated.

"Relying on information you provided, including the disclosure you filed with the office of the Town Clerk, and on any other necessary follow-up investigation, we are satisfied that this matter does not require any further action on our part."

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