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    Monday, May 13, 2024

    Attorney to interview utility cooperative staff, board in investigation of indicted leaders

    Norwich — Current and former employees and board members of the Connecticut Municipal Electric Energy Cooperative will be invited to contact the independent attorney hired by the board of directors to investigate top staff indicted on public corruption charges for their roles in organizing lavish trips to the Kentucky Derby over a four-year period.

    The CMEEC board hired attorney Eileen Duggan, a labor law specialist, to conduct an independent investigation into the allegations contained in two federal indictments handed down Nov. 8 against CEO Drew Rankin containing eight separate charges and one indictment of Chief Financial Officer Edward Pryor on four charges. Both were placed on unpaid leave Nov. 9 pending the outcome of the board’s investigation, being overseen by a special investigation committee established Dec. 5.

    In a memo to CMEEC General Counsel Robin Kipnis on Thursday, Duggan asked that current and past CMEEC employees and board members dating back to 2010 be offered the opportunity to contact her “regarding potential workplace misconduct and/or performance deficiencies” by Rankin and Pryor related to issues contained in the two federal indictments.

    “We intend to conduct a focused, but thorough and fair investigation,” Duggan wrote, “and to that end, we hope to speak with individuals who have relevant, direct information regarding the subject matters of the investigation.”

    One indictment charged Rankin, Pryor, Norwich Public Utilities General Manager John Bilda and former CMEEC board members James Sullivan and Edward DeMuzzio of Groton with one count each of conspiracy and three counts each of theft from a program receiving federal funds. Rankin and Sullivan face the same charges in a second indictment alleging that Sullivan was paid for nearly $100,000 in personal expenses from CMEEC funds.

    The five-member special investigation committee, chaired by Norwalk member Debora Goldstein, will receive Duggan’s report initially. The committee will make recommendations regarding the employment of Rankin and Pryor to the full board “which findings and recommendations shall carry great weight,” the committee charter approved Thursday stated.

    At the board’s Nov. 15 annual meeting, members voted 10-5 on a slate of executive staff for 2019 that included Rankin continuing as the CEO, while Pryor had announced previously he planned to retire Jan. 1. Chairman Kenneth Sullivan said at the time the board was obligated to list Rankin until the investigation is completed.

    Goldstein said the special investigation committee will meet at 1 p.m. Jan. 4 at the CMEEC headquarters, 30 Stott Ave. in Norwich and again at 1 p.m. Jan. 23 in Norwalk.

    Goldstein said the committee’s schedule will be driven by attorney Duggan’s investigation and when the committee will receive her report. Goldstein said she expects to receive Duggan’s final report by the Jan. 23 meeting.

    Duggan’s memo concluded with an assurance to cooperative employees that CMEEC prohibits retaliation for participating in the investigation “whether required to participate or voluntarily participating in the investigation.”

    The indictments alleged that Rankin, Pryor and top board members arranged the Kentucky Derby trips from 2013 through 2016 and a trip to The Greenbrier golf resort in October 2015 using utility cooperative funds from a fund that otherwise would have been divided among the six member utilities as rate stabilization revenue. The indictment also said CMEEC diverted funds into a “contra-margin” account to pay for the derby trips. CMEEC funds also were used to pay for luxury souvenirs and gifts for the dozens of trip participants.

    CMEEC, owned by municipal utilities Norwich Public Utilities, Groton Utilities, Bozrah Light & Power, Jewett City Department of Public Utilities and two utilities in Norwalk, provides wholesale electricity to its members and several contracted recipients, including the Mohegan tribe.

    c.bessette@theday.com

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