Fire commissioners accused of fraud

Two Northern Lakes Fire Protection District commissioners, including Chairwoman Lynda Thurman, are under investigation for alleged medical insurance fraud.

Thurman said she wasn’t aware of the allegations leveled by fellow Commissioner Larry House until Fire Chief Marion Blackwell called her Tuesday.

Thurman said the allegations against her are “ludicrous.”

“How they can drag me into it, or anyone else, is just beyond me,” she said.

House complained about possible fraud associated with Commissioner Terry Thompson’s insurance coverage through the Hayden-based fire district, which serves 106 square miles and more than 31,000 residents in and around Hayden and Rathdrum.

Kootenai County sheriff’s Lt. Kim Edmondson confirmed that the department is investigating a complaint against Thurman and Thompson. Edmondson said the complaint was filed by House, but she declined to elaborate on the allegations, saying the investigation is ongoing.

Thompson said he first heard of the complaint Tuesday. He said he didn’t understand why it was being discussed publicly.

“This was in executive session, and it can’t be talked about,” he said. “I can’t give any information because it was in executive session.”

The Idaho Open Meeting Law does not require any meetings to be held in executive session. A public body may opt to hold a closed meeting – but only to discuss six narrow topics, including pending litigation and labor negotiations.

State law also does not prohibit members of a public body such as the fire district commission from sharing with the public what has been discussed in an executive session.

House did not immediately return a call Tuesday seeking comment.

Thurman said Thompson, who was elected to the commission in 2005 and is employed by the Spokane Valley Fire Department, didn’t enroll initially in Northern Lake’s insurance plan.

She said Thompson was contacted by a fire district secretary during an open enrollment period and he then indicated he wanted to apply for benefits. Thurman said the insurance provider for Northern Lakes asked the fire district to submit a letter saying Thompson wanted to enroll and that the letter must be signed by a commissioner.

The secretary reportedly asked another commissioner to sign the letter, but the commissioner said he didn’t feel comfortable and refused, Thurman said.

She said she didn’t know the commissioner was hesitant to sign until after the secretary had presented her with the letter and had her sign it.

Thurman said the letter stated Thompson wanted insurance coverage.

Because of privacy laws and because discussions took place in a meeting closed to the public, Thurman said she is limited on what she can say.

She said Thompson also is insured through the Spokane Valley Fire Department but there’s “not an illegal thing wrong with that.”

Both Thurman and Commissioner Dennis Amende alluded to questions over whether pre-existing medical conditions had been disclosed on Thompson’s insurance application.

“It’s not up to me to be the insurance investigator on every commissioner and see what they check under ‘medical diagnosis,’ ” said Thurman, who has been a commissioner since the fire district was formed in the late 1990s.

Thompson declined to discuss his insurance application. “That’s a patient’s privacy, and it’s executive session,” he said. “You can’t discuss someone’s private records.”

Amende and Commissioner Larry Clark said Tuesday they were unaware an investigation was under way.

Clark declined to comment further.

Fire Chief Blackwell said there was “an allegation of impropriety” but said he could not comment on “what occurred or what is occurring.”

“We’re going to investigate,” Blackwell said Tuesday. “Once the investigation is complete, we will take whatever action is necessary.”