Assemblyman Collins voted for SB37 that allowed a Billion Dollar Fraud
Nevada Senate Bill 37 was passed in 1999 to allow Nevada's Workers Compensation Insurance department named State Industrial Insurance System to be abolished. The assets, liabilities and hundreds of millions of dollars were transfered into EICON. EICON was created as a mutual insurance company which means that the policy holders own the new company. EICON was transfered into EICN and then was sold as a public stock offering through EIG in 2007. The new company "EIG" was immediately worth 1 Billion Dollars. Doesn't this seem like a 1 billion dollar fraud upon the assets of the state of Nevada?
Douglas Dirks was the Chief Financial Officer of SIIS and is the Chief Executive Officer of EIG. He lead the transformation of Nevada's owned SIIS to the now publicly traded EIG. If Dirks could make 1 Billion dollars for the policy holders of EICN, why could he not have made 1 Billion dollars for the residents of Nevada?
In 2000, EICON had policy premiums of over $600 millions dollars a year and in 2007 there was only $100 million dollars of annual premium received. What if EICON was able to retain $300 million dollars of annual premium? Would the stock offering generated 3 billion dollars? Was this stock offering the original plan and was never presented to the public? How much did Dirks earn by taking the original SIIS public?
Did Collins know about the future of SIIS? Did Collins just not bother to research SB37 enough or just count on Douglas Dirks to tell him the correct answer? Could Collins method of button pushing by allowing high paid lobbyists to think for him cost Nevada 1 Billion dollars? Or did Collins methods cost Nevada 3 Billion dollars?