The Opinion Blog

Lives Ruined, Answers Needed

Thursday’s second editorial urges the state Department of Insurance to open a new investigation into the activities of salesman Rick McDavid, whose exploits were chronicled by David Wren this past Sunday:

It was hard to read reporter David Wren’s article this past Sunday, detailing the financial ruin of dozens of local seniors in a complex insurance and mortgage plan, without becoming outraged and angry. Where was the state? Aren’t those selling insurance supposed to be regulated? Why was this allowed to continue for so long?

The state Department of Insurance, in fact, opened two investigations into the actions of salesman Rick McDavid, who it must be said has not been convicted of any wrongdoing and maintains he did nothing illegal. Both of those investigations – one in 2011 and one in 2012 – were dismissed quickly after McDavid said he didn’t do anything wrong.

In closing the second case, the investigator said that the matter was ended at least in part because of a lack of supporting documentation. That’s perhaps understandable, if frustrating. It’s hard to prosecute or investigate wrongdoing if you’re not sure what exactly is being alleged. But some of that blame may lie with the Insurance Department, which it appears never asked for more information beyond the standard complaint form before dismissing the cases. Now that reporter David Wren and attorney Sid Connor have done the hard work of pulling these stories together and illustrating their common threads, we hope the Insurance Department will rethink its former summary dismissals.

Clearly, something went very wrong for the many victims involved in this saga. McDavid’s purported actions were at the very least immoral, financing a lavish lifestyle by taking advantage in many cases of vulnerable seniors willing to trust a person referred to them by a fellow church member or relative. Nevertheless, it may yet turn out that he actually did nothing illegal. If that’s the case, the legislature should get work on laws that would prevent future unscrupulous copycats. The first step, however, should be another probe by the Insurance Department, and soon, this time giving McDavid’s activities more than a cursory glance.

Meanwhile, if nothing else, the story reminds us once more of lessons that are never too old to be learned again: If it sounds too good to be true, it is. Read it before you sign it. Don’t let yourself be bullied into signing anything you don’t understand, especially when it affects your personal finances. And don’t put all your faith in a handshake and a smile.

 

Payout Worth It to Ensure DeCenzo Stays Put

Thursday’s editorial stands behind the recent decision to award CCU President David DeCenzo a hefty retirement bonus:

Coastal Carolina University trustees were right late last month to promise president David DeCenzo a $1 million retirement package. Simply put, he’s showed that he’s worth it. In the long run, it could even prove to be a money saver for the school.

DeCenzo took the helm of Coastal Carolina University as the school struggled through one of the bleakest periods of its young life. Lax accounting procedures and troubling spending decisions by the previous administration had created a crisis of confidence in the community in mid-2007. Criticism came in from legislators, investigations were launched by the solicitor’s office and the FBI, and the school’s vice president of finance was fired. Amid all this, the newly installed president set out on the difficult task of restoring public confidence in the school and rebuilding its reputation.

Raise the Retirement Age



Sunday’s editorial offers a first solution for fixing the state’s growing retirement system funding gap:

We don’t envy the 528,000 state employees and retirees relying on the state’s retirement system the coming months. Faced with a $17 billion gap between assets and liabilities, the system appears poised to be the center of a strong debate when the legislature reconvenes in January. The fate of their promised retirement income will be in the hands of state lawmakers, many of whom will be running for re-election in the coming year.

Specifically, the problem the system faces is not so much the amount of the gap as the time it would take the state to pay it back. Government accounting standards that the state has adopted call for a maximum of 30 years to pay back all of the system’s liabilities. In other words, if everybody in the system retired at the same time, the system should be able to cover the cost within 30 years.

Fight the System, not the User



Is going back to work after retiring double dipping? We take a look at the issue in Friday’s editorial:

We’ve heard the complaints for years about those who take advantage of retire-rehire policies and the state’s Teacher and Employee Retention Incentive program. It seems to come up every time somebody prominent takes advantage of the option.

When Myrtle Beach City Manager Tom Leath and Police Chief Warren Gall, for example, took advantage of the option in December, it prompted a groundswell of grumbling about unfairness and “double dipping” into the coffers.

Town Hall for Seniors Good Idea

Tuesday’s editorial lauds the effort to create a health-care forum for retirees.

The Grand Strand and both Carolinas continue to be magnets for retired folks from many other states so a health care forum especially for seniors is an excellent idea.

Financial literacy would make American well

From the morning e-mail ... In stark contrast to Jerome Corsi ("Seer or scare-monger on the housing crisis," below), financial planner Bill Losey deems financial illiteracy to be the source of our economic misery:

The "Real" Financial Crisis in America

By Bill Losey

We have a big financial crisis in America.

It’s not the weak housing market, rising unemployment, inflation, gas prices over $4 per gallon, the collapse of Bear Stearns, fall-out from the sub-prime mortgage fiasco, declining home prices, stock market volatility or geo-political unrest in the Middle East. Sure they have made front page news; however they’re not the real issue. They are symptoms of the “spending crisis” in America. They are symptoms of the real issue … we are a country of financially illiterate people.