A portion of the newsletter sent out by Steven Golia
with the message about Scarborough bonds that was later retracted.
Some time during December-whether it was before or after the acquisition isn't known-McIntyre apparently hired a key player in the world of individual surety, Steven Golia
He had been president of Charlottesville, Va.-based IBCS Fidelity, an arm of Edmund C. Scarborough's controversial surety business.
What happened next turned heads.
On Jan. 30, Golia
sent out one of his "Secrets of Bonding" IBCS newsletters announcing that Gallagher McIntyre, the new unit, "is now the MGA," or managing general agent, for Scarborough's individual surety bonds.
"You may continue to rely on the fast service and creative underwriting you depend on from Steve Golia
when a Scarborough Bond is needed," Golia
After several days of confusion, Gallagher and Golia
retracted the announcement.
More broadly, Golia's newsletter seemed to crystallize Golia's and Scarborough's aspirations to link, when possible, to respected brand names in the industry and inch closer to legitimacy.
Scarborough and Golia
have defended their surety bonds as complying with state and federal laws and portrayed their business as a champion of small and minority contractors that fail to qualify for bonds backed by corporate, Treasury-listed sureties.
Neither has been charged with a surety-related criminal offense.
According to documents attached to lawsuits, however, Scarborough started in individual surety by relying on the balance sheet of two men with long records of surety fraud.
in recent years has signed off on Scarborough bonds backed by only claims that there was valuable coal waste on a West Virginia property.
Scarborough apparently had no permit to mine and sell the waste, according to public documents.
Among the heads turned by Golia
's newsletter were those belonging to Gallagher's top surety executives, who learned that Golia was an employee of the newly acquired McIntyre
firm in late January.
[Golia] is an employee, and an investigation is under way."
, too, sent out a retraction.
said that his
new employer "will not serve" as managing general agent "nor will we represent any individual surety."
Key Dates in Gallagher-Golia Retraction
Steven Golia, former president of individual surety Edmund C. Scarborough's IBCS Fidelity, announced in his newsletter, "Secrets of Bonding," that Gallagher McIntyre offered individual surety, but the company gradually said it was untrue.
Jan. 25 Gallagher surety executives learn that Steven Golia, who had been a key member of Edmund C. Scarborough's individual surety business, joined and now is with Gallagher McIntyre.
JAN. 30 Golia announces in an IBCS newsletter that Gallagher McIntyre is the managing general agent for the Scarborough bond program.
FEB. 5 Golia
issues a retraction and apology stating that Gallagher McIntyre will not be managing general agent for the Scarborough bond program "nor will we represent any Individual Surety."