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PROVIDENCE, R.I. (AP) – The state Department of Business Regulation has ordered Blue Cross & Blue Shield of Rhode Island to demand that its former president repay the nonprofit insurer $10,000 plus interest for the bricks with his names on them that were recently installed at a church.

While Ronald Battista was the president of the nonprofit insurer, he directed that the stones be engraved with the names of Ray and Irene Battista even though Blue Cross paid for them.

In a letter to Montanaro sent Monday, DBR director Marilyn Shannon McConaghy called Battista’s decision to have the stones engraved with his parents’ names “a clear misuse of Blue Cross/Blue Shield funds by Mr. Battista for his personal benefit.”

She ordered Blue Cross to demand repayment that Battista repay the money with interest by Nov. 15, and to confirm the company has made that demand of Battista by Monday.

Scott Fraser, a spokesman for the insurer, said that a demand letter wouldn’t be necessary since Battista had already volunteered to repay the money with interest.

Six months ago, Battista was forced to resign in the wake of controversy over compensation. He earned more than a half-million dollars a year in salary, and walked away with a severance package worth more than $3.1 million.

He was forced out after reports about benefits he received including a $600,000 loan that the board later forgave.

AP-ES-11-05-04 0942EST

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