Pinnacol Chief Issues Apology

CEO Says He 'Overreacted' But Has Not Contacted Station

Arthur Kane and Tony Kovaleski, CALL7 Investigators
May 27, 2010
http://www.thedenverchannel.com/news/23697156/detail.html

DENVER -- The head of Pinnacol Assurance, the quasi-public worker's compensation provider, issued an apology for his behavior captured by 7NEWS cameras and said the company would "re-evaluate" its travel policies.

Pinnacol Chief Executive Officer Ken Ross threatened to break CALL7 Investigator Tony Kovaleski's finger, pushed him and had to be restrained after Kovaleski started asking questions about a Pebble Beach golf trip that included three governor-appointed board members.

In at statement posted on Pinnacol's website, Ross said he overreacted but also justified his actions by saying he was upset that Kovaleski intruded on a private ceremony.

"I want to respond to the recent Channel 7 story about Pinnacol's entertainment and agent recognition practices," Ross said in the statement. "Before I do, let me first apologize for overreacting to the situation that I considered an improper intrusion by the reporter into a private, personal ceremony being experienced by two of our guests."

Even though the statement has an apology in it, Ross has not contacted 7NEWS to apologize.

Read the Pinnacol Statement (pdf)

CALL7 investigators had followed Pinnacol on the trip after an insider tip said board members were joining the excursion and Pinnacol was paying for it. Board Chairman Gary Johnson and board members Debra Lovejoy and Ryan Hettich were seen golfing, wining and dining on the five day trip -- raising questions of their independence on deciding issues such as executive pay and travel policies. Johnson and Lovejoy's spouses were also on the trip.

Kovaleski approached Johnson after a $495 round of golf to ask him about the propriety of the outing when Ross interrupted, threatening and pushing Kovaleski.

"You point your finger at me again, and I'm going to break it," Ross said while pointing his finger at Kovaleski. He turned to the camera and demanded that it be turned off.

"This has nothing to do with Pinnacol," Ross said.

"It doesn't?" Kovaleski asked. "Then why did your employees let us know you were here? Why are your employees outraged? You are spending a lot of money on a trip and you have board members who are appointed by the governor."

The guests Ross referred to in his statement were Lovejoy and her husband. Lovejoy's husband was re-proposing to her after the round of golf. While 7NEWS' cameras were a distance away and did not interrupt the ceremony, both Lovejoy and her husband were on the trip on Pinnacol's tab.

Ross, who was being restrained by colleagues, surged at Kovaleski.

"Please, don't push me," Kovaleski said.

The statement also said the board will re-evaluate the agent recognition trips like the one 7NEWS uncovered.

Since the story ran, Gov. Bill Ritter has called the trip "ill-advised" and two key state senators have called for resignations of the board members who attended the golf trip, which included rooms at $695 a night and golf at nearly $500 per person, per round.

The Aurora Sentinel has called for Ross to resign, and the Denver Post Thursday wondered "if new blood isn't needed in Pinnacol's leadership" in an editorial.

Despite the apology, Pinnacol is still fighting to keep records of the trip from the public. CALL7 investigators have asked for the documents, which were provided on other trips, under state open records laws, and Pinnacol has asked a judge to sanctify their denial of the request.

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