Health insurer CEO axed over affair, arrest — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Health insurer CEO axed over affair, arrest

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in Firing,Human Resources

Highmark Blue Shield has terminated its CEO in the wake of criminal charges that he attacked the husband of a former employee with whom he was having an affair.

Highmark Blue Shield, which serves 21 counties in central Pennsylvania and the Lehigh Valley area, fired Kenneth Milani after police charged him with assault and trespassing.

According to published reports, Milani began an affair with a subordinate in October 2011. Milani’s wife discovered the affair and told the woman’s husband about it. Milani allegedly went to the man’s house, where the two got into an argument that ended with police being called.

When charges were filed, the company first suspended Milani while it investigated and then terminated him for misconduct.

The incident hurt Highmark. Moody’s investment service downgraded the insurer’s rating after Milani’s termination.

Milani could have the charges dropped against him if he undergoes counseling.

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