After 3 years, 4 lawsuits & FBI raid; new details of settlement - KCBD NewsChannel 11 Lubbock

After three years, four lawsuits and FBI raid; new details of settlement

By James Clark | email 

LUBBOCK, TX (KCBD) – KCBD NewsChannel 11 has learned new details of the proposed settlement between City Hall and a company called AAG/Icon, which was formerly controlled by Lubbock businessman Ted Parker. The City Council meets Saturday afternoon in a special session to consider a compromise with AAG/Icon. 

Although specific details are still not available, we have learned that between the city's settlement with its liability insurance, coupled with the AAG/Icon settlement, taxpayers will be stuck with less than $500,000 of legal bills.  Potentially, it could have been more than $1.8 million for just one of four ongoing lawsuits between the city and Mr. Parker.

Those legal bills include lavish items for several local attorneys including steak dinners, beer and oysters, filet mignon, Starbuck's coffee, and travel and lodging, the need for which has so far not been explained by the city.

Back on March 5th 2007 the city said in a written statement that Parker interfered with its right to audit health insurance costs as AAG had been the city's health insurance administrator from 2004 through 2006.

"Therefore, the city has no option, given the resistance of AAG, but to initiate litigation in support of the audit," the city said in that same written statement, which coincided with the city filing the first in a series of lawsuits.

Two of the four lawsuits are still ongoing with no record of a possible settlement. 

Adding intrigue to the legal drama, in May of 2008 the FBI raided Lubbock City Hall and confiscated box after box of health insurance records. To date no one at AAG/Icon and no one at City Hall has been charged with a crime.

Once the city sued and was counter-sued a $500,000 liability insurance deductible applied. So in essence what the city has been able to do in the last week is negotiate its legal costs back down to amount equal to or less than its insurance deductible; at least for now. 

Copyright 2010 KCBD. All rights reserved.

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