Town still seeking to have Perry repay $5K

By Crystal Bozek
cbozek@eagletribune.com

November 23, 2008 01:55 am

NORTH ANDOVER — It has taken close to six months already, but the town is continuing its legal fight to get back $5,000 in unpaid health insurance payments from former School Committee Chairman Alfred Perry.

A Lawrence District Court judge dismissed North Andover's lawsuit against Perry in early October after the town's lawyer, John Bryden, failed to show up at a hearing.

But Bryden argued that he had called the clerk's office, alerting them to a scheduling conflict because he was in Superior Court that day.

A judge recently reversed the dismissal of the suit.

"There was some confusion, but everything has been cleared up and we're moving forward. I've met with Mr. Perry," Bryden said.

The two sides will be back in court on Wednesday at 11 a.m. for a status conference.

Town officials are hoping there is some resolution soon.

"We are diligently moving forward with collecting the money Mr. Perry owes the town," Town Manager Mark Rees said. "The process could go much more smoothly and quickly if he comes forward and makes the payment voluntarily."

The town is suing Perry for more than $4,700 in unpaid COBRA health insurance payments that built up last year after he left the committee.

Perry, 56, stepped down in March 2007 as School Committee chairman and did not run for re-election. He participated in the town's health insurance plan through COBRA after leaving the post.

COBRA is a federally mandated program in which employers continue to provide an ex-employee with health insurance for up to 18 months. The town pays for the health insurance, and the former employee is required to reimburse the town for 102 percent of the cost of the premium.

Town officials allege that Perry paid his bills at first and set up a monthly payment plan, but stopped shortly after.

In a Sept. 3 letter to the court, Perry acknowledged that he needs to pay back the town.

"I currently am out of work and do not have any income to pay this claim," he wrote.

The Board of Selectmen discussed suing Perry back in December 2007, but did not file suit until the summer.

In addition to getting the lawsuit back on track, the court reinstated the town's $6,000 attachment on Perry's property, offering the town some security while it pursues a judgement.

The home at 548 S. Bradford St. is assessed at $1.05 million, according to records on the town's Web site.

The town might have to wait a while to get its money back, since this isn't Perry's only legal run-in.

Perry was arrested in early October and arraigned on six counts of embezzlement by a broker, six counts of larceny over $250, six counts of misdemeanor insurance fraud by an insurance agent or broker, forgery of a check and uttering a false document.

The charges arise from a police investigation of Perry's now defunct Internet Insurance Agency, based on complaints from six customers who said they were cheated out of their money.

According to court records, Perry used $28,295 given to him by various clients to pay personal gas, telephone and credit card bills, while allowing his clients to believe they were insured.

Perry will be in Lawrence District Court in January for a pretrial hearing on his criminal charges, said Steve O'Connell, spokesman for the Essex County District Attorney's office.

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