Published: November 26, 2009 11:08 pm      

PINE AVENUE: PABA pays former members a bit

The Pine Avenue Business Association has refunded close to $6,000 to members ripped off when the organization defaulted on their insurance coverage earlier this year.

PABA Board of Trustees Chairman Jerry Genova said 18 members owed money as a result of the insurance flap signed contracts during a special meeting Tuesday, agreeing to accept only 31 percent of PABA’s debt to them in exchange for the check that night. Genova claims most of the members attending the meeting went home satisfied that the matter has at least partially been resolved.

“Some people were upset about not having a very crisp line of communication but we really couldn’t say anything,” Genova said. “We are trying to turn the corner and put this behind us and bring some validity back to the Pine Avenue Business Association.”

About 60 members obtaining health insurance through PABA received letters from Independent Health informing them their coverage had been dropped on March 1 because of the association’s failure to pay premiums over an extended period of time. As a result, close to 20 members who had been up to date and had made payments through April were owed refunds, including a few in the thousands of dollars.

The health insurance fiasco was not determined to warrant a criminal investigation but led to the resignation of PABA Executive Director Mary Jo Zacher and her administrative assistant Arlene Atkin. The women were criticized for poor bookkeeping and for letting some members slide on insurance payments, which caused the shortage.

Over the past seven months, a trio of remaining active PABA members, including Genova, have been reviewing payment claims from members and trying to collect enough money to refund at least one-third of what was owed. Genova said affected members were invited to Tuesday’s meeting and offered a refund check for 31 percent of the debt under the condition that it would free PABA from any further financial responsibility.

“Anyone that signed (Tuesday night) is now considered to be paid and full,” Genova said, adding 18 claims were considered paid off.

Genova said there are still a few members who filed claims that did not attend the meeting. A certified letter will be sent out to them soon outlining the terms of the refund agreement.

Anna Treat, whose husband owns a small business and is a PABA member, estimated she was owed between $2,100 and $4,000 for insurance premiums they paid to the association and other costs since the lapse happened. After months of fighting for her money back, including obtaining a city court order against PABA, she was among those who signed the agreement and received a check for $630.

“I was just so fed up with it, I just couldn’t fight it anymore,” she said. “There comes a time where you just have to cut your loses. I can’t stress over this anymore. If I had turned it down, I may never get back a dime.”

Treat said she was disappointed with how PABA handled the situation. Though she accepts the lapse was likely due to poor bookkeeping, Treat said the chairman and other board members should have known what was happening and taken corrective action.

“This happened because of their failure to watch over the underlings,” she said. “They just wouldn’t admit their responsibility.”

Treat also is frustrated how unresponsive elected officials and other agencies were during the process. She said she reached out to Mayor Paul Dyster, the Better Business Bureau and the State Attorney General, among others, to look into the scandal but was offered little to no assistance.

“The powers that be that are supposed to protect us wouldn’t help us at all,” she said.

Though she signed the agreement for less than one-third of the money owed, Treat refuses to forgive and forget.

“We shouldn’t have been out a penny,” she said. “It wasn’t like I was gambling my money and I lost it.”

Genova acknowledged that members who were current on their insurance payments have the right to be upset they are not receiving full refunds.

“I believe they should have been able to be paid and full if we could make that happen,” he said.

PABA officials are still trying to collect money from those members allowed to become lapse on insurance payments. As of this week, only one person has paid the money while several have refused to acknowledge any debt.

The Niagara Gazette has obtained the list of members and businesses believed to owe back insurance payments to PABA but is not printing it until all of the names can be verified.

Genova said any additional insurance money collected from non-payers will be placed in a special account and could be used to further reimburse members who were ripped off.

In addition to issuing the partial refund checks, Genova said PABA is making other attempts to put the insurance controversy in the past. For starters, the association’s name will be changed to the 62 North Little Italy Niagara business district and will mainly focus on ensuring safety, security and street cleanliness for businesses along Pine Avenue. Keeping annual traditions such as the Italian Festival and summer outdoor concert series alive are also priorities, he said.

“As long as I have anything to do with this, we will never handle any insurance again,” Genova said, adding it was a tough decision to change PABA’s name but necessary. “Sometimes it’s hard to shake a stigma unless you start fresh.”

City Councilman Samuel Fruscione and School Board member James Cancemi have been elected to serve as trustees, which brings added validity to the association, Genova said.

Also Tuesday, the board named Ernie Lucantonio to serve as community relations coordinator, a position that comes with an annual stipend of $12,000 and is paid using city casino funds. The city finances the same positions for the Niagara Street and Main Street business associations.

Genova said Lucantonio will spend the next several weeks visiting every business on Pine Avenue and trying to solicit new membership.

“Basically, we’re just trying to get back to business,” Genova said.

However, he noted the association remains in debt on numerous bills, such as Independent Health, unpaid rent at its previous office headquarters and a water bill that he says went unpaid for almost six years.

“We are turning the corner but also acknowledging the fact there are a lot of things we owe,” he said. “We are not only starting at ground zero but we are starting in debt which makes it even more difficult. But we have some people in place now that really care about the future (of Pine Avenue) and we are going to take it one day at a time.”