Article based on an application for the appointment of a Commissioner to collect evidence for a criminal investigation into alleged fraud - pursuant to a request for judicial assistance from Italy - that was filed at federal court in the USA on March 15, 2004. Individuals and businesses mentioned in the request for assistance include Parmalat SpA, Morgan Stanley, Bank of America, Citibank, Antonella Ioffredi, Silvia Cavallari, Web Holding Inc., Western Alps Foundation, Boston Holding Corporation, Boston Financial Corporation, Endeavours Fund, Latitalia Group Corporation, Louis Caiola, Heather Lee Harrison, Steven Alan White, Jeffrey Scott White, Epicurum Fund Management Service LLC, Cotton Wood Management Services Inc., Thomas B. Bratvet, Angela D. Williams, NYTE Investments LLC, Calisto Tanzi, Giovanni Tanzi, Anna Maria Tanzi, Fausto Tonna, Parmalat Capital Finance, Gian Paolo Zini, Heather Lee Harrison, Buconero LLC, Calisto Tanzi, Fausto Tonna, Luciano Del Soldato, Maurizio Bianchi, Lorenzo Penca, Claudio Pessina, Gianfranco Bocchi, Gian Paolo Zini, Giovanni Bonici, Stefano Tanzi, Franco Gorreri, Domenico Barilli, Giovanni Tanzi, Paola Visconti, Francesco Giufreddi, Luciano Silingardi, Fabio Branchi, Angelo Ugolotti, Donatella Alinovi, Claudio Baratta, Alberto Maurizio Ferraris, Curcastle Corporation, Carital Food Distributors NV, Bonlat Company, Hit International, and ITC&P SpA.
Eighty-six investors from 19 countries who claim to have invested more than $570 million in the Lancer Offshore Group have filed a lawsuit against its directors, administrator, auditor and prime broker. The three biggest claimants are all based in Montreal, Canada: Fondation Lucie et Andre Chagnon, a charity with a claim for $100 million; Bombardier Inc., the world's biggest train maker and third largest civil aircraft manufacturer whose pension fund has a claim for $68 million; and the University of Montreal's pension fund, with a claim for $67 million.
Section 304 Petition for Assistance in Insolvency Proceedings in the United Kingdom by David Rose, as the Foreign Representative of London and Scottish Assurance Corporation Limited, Edinburgh Assurance Company Limited, The Indemnity Marine Assurance Company Limited, The British & European Reinsurance Company Limited, Commercial Union Assurance Company Limited, General Accident Fire and Life Assurance Corporation Limited, General Accident Reinsurance Company Limited, The New Zealand Reinsurance Company (UK) Limited, The Road Transport & General Insurance Company Limited, The Ulster Marine Insurance Company Limited, Scottish Insurance Corporation Limited, The Yorkshire Insurance Company Limited, and The Ocean Marine Insurance Company Limited, at the U. S. Bankruptcy Court for the Southern District of New York.
Application for the appointment of a Commissioner to collect evidence for a criminal investigation in Italy into Calisto Tanzi, Fausto Tonna, Luciano Del Soldato, Maurizio Bianchi, Lorenzo Penca, Claudio Pessina, Gianfranco Bocchi, Gian Paolo Zini, Giovanni Bonici, Stefano Tanzi, Franco Gorreri, Domenico Barilli, Giovanni Tanzi, Paola Visconti, Francesco Giufreddi, Luciano Silingardi, Fabio Branchi, Angelo Ugolotti, Donatella Alinovi, Claudio Baratta and Alberto Maurizio Ferraris for alleged bankruptcy fraud and related crimes regarding Parmalat SpA.
A slew of lawsuits concerning the collapse of Bermuda-based captive First Virginia Reinsurance Ltd. have been stayed pending a ruling on which United States court should have jurisdiction. All proceedings have come to a temporary halt while a 'Judicial Panel on Multidistrict Litigation' considers a motion by three of the defendants, General Re, GeneralCologne Re and Berkshire Hathaway, to have the cases consolidated into one action at the U. S. District Court for the Western District of Tennessee.
Bermuda-registered Sentinel Insurance Company Ltd., which collapsed in 2001, has "substantial debts" and "virtually no assets whatsoever", according to its provisional liquidator, Jeremy Cox. Cox, who is Bermuda's Registrar of Companies, commented on the indebtedness of Sentinel in a court filing at the U. S. Bankruptcy Court for the Northern District of Georgia on December 1, 2003.
Nearly 500 victims of the Imperial Consolidated fraud have filed a lawsuit in which they seek to hold offshore provider Ansbacher responsible for their entire losses of over £30 million (US$54 million). The complaint was filed against Ansbacher (Bahamas) Ltd. at the Bahamas Supreme Court on January 30, 2004 by 486 plaintiffs located in several countries.
An offshore fund administrator has been accused of "impeding" the investigation in the United States into the $600 million collapse of the Lancer group of hedge funds. Citco Fund Services (U.S.A.) Inc. has refused to turn over records concerning BVI-registered Lancer Offshore Inc. and The OmniFund Ltd., which its Netherlands Antilles affiliate administered.
Several Bermuda-registered companies or their clients have been affected by the failure of a hedge fund group which allegedly defrauded its investors of more than $600 million. Subsidiaries or affiliates of the Bank of Bermuda, Bank of Butterfield, Conyers Dill & Pearman, Lines Overseas Management, and the Meridian Group are on the service list for filings at federal court in Miami.
Three United States-based firms have asked a court to appoint an independent Bankruptcy Trustee for AlphaStar Insurance Group Ltd. to prevent further fraud. The current management of AlphaStar and 11 of its subsidiaries, which all filed for Chapter 11 bankruptcy protection in New York on December 15, 2003, cannot be trusted, it was alleged.
Article based on an application to collect evidence for a criminal investigation into organized crime - pursuant to a request for judicial assistance by Italy - that was filed at federal court in the USA on January 8, 2004. Individuals and businesses mentioned in the request for assistance include Luigi Bartolini, Spartaco Belotti, Alfredo Maini, Carlo Mancini, Lino Mancini, Enrico Nicoletti, Antonio Nicoletti, Massimo Nicoletti, Enrico Terribile, Stefano Taccini, Rodolfo Graffi, Rocco D'Agostino, Gianni Micalusi, Attilio Adorni, Vittorio Casamonica, Pietro Consalvi, Patrizia D'Agostino, Ruggero Di Clemente, Piero Lancianese, Lino Mancini, Alessio Monselles, Antonio Raponi, Eda Corsagni, Fabrizio Montali, Ermenegildo Scarapicchia, Fabrizio Spadoni, Vinicio Spinelli, Darlo Maria Vizzotto, Salvatore Mule, and Bernardina Tulli.
Section 304 Petition for Assistance in Insolvency Proceedings in the United Kingdom by Kenneth Randall and Alan Quilter, as the Foreign Representatives of Ludgate Insurance Company Limited, at the U. S. Bankruptcy Court for the Southern District of New York.
Section 304 Petition for Assistance in Insolvency Proceedings in Canada by Mintz & Partners Limited, as the Foreign Representative of Energy Innovations Corporation, at the U. S. Bankruptcy Court for the Southern District of New York.
Section 304 Petition for Assistance in Insolvency Proceedings in the Cayman Islands by Gordon MacRae and James Cleaver, as the Foreign Representatives of Parmalat Capital Finance Limited, at the U. S. Bankruptcy Court for the Southern District of New York.
Public Announcement about FSC Asian Millennium Ltd., FCS Thailand Fund Ltd. and Waidberg Millennium Fund Ltd. by the British Virgin Islands Financial Services Commission.
Letter to the Editor of OffshoreAlert from Stephen Crane, CEO of AlphaStar Insurance Group, formerly known as Stirling Cooke.
An arbitration panel sitting in New York has awarded more than $1 billion against failed aviation reinsurance pool manager Fortress Re Inc., of North Carolina. In a decision issued on December 16, 2003, the panel found that Fortress Re and its principals, Maurice Sabbah and Kenneth Kornfeld perpetrated a massive fraud against Sompo Japan Insurance Inc.
Bermuda-domiciled AlphaStar Insurance Group Ltd. and 11 of its subsidiaries have applied for Chapter 11 bankruptcy protection in New York. The group is seeking breathing room while it seeks buyers for its assets, including policy-issuing subsidiary Realm National Insurance Company, for which AlphaStar "is no longer able to provide capital".
A United Kingdom-based accounting firm accused of fraud involving an offshore bank has gone into liquidation and its two partners declared bankrupt. Orders to wind-up Dobb White & Co., of Leicester and Nottingham, in England, and bankrupt Shinder Singh Gangar and Alan White were issued by the UK High Court on December 2, 2003.
The Zurich Financial Services Group has accused PricewaterhouseCoopers (Bahamas) of failing to pursue claims against several parties who were involved in a failed offshore investment fund.It claims PwC has taken no legal action against the administrator or directors of the
The Virginia Commissioner of Insurance has been accused of wrongfully seizing $57 million that allegedly belongs to insolvent Bermuda based captive First Virginia Reinsurance.Alfred W. Gross, as Deputy Receiver of Reciprocal of America and The Reciprocal Group Inc., allegedly illegally
An offshore company which collapsed with massive losses amid allegations of fraud is being sued by a purported forex trader who claims he is owed commissions for making it a profit.Igor Toshchakov, of Los Angeles, California, filed a lawsuit against Orion International LLC, of Western Samoa, and its President, Russell B. Cline, at the U. S. District Court for the Central District of California on August 14, 2003.
Deloitte & Touche has offered $32 million to settle a class action lawsuit filed on behalf of shareholders of the British Virgin Islands-registered Manhattan Investment Fund who bought shares between October, 1995 and January, 2000.
A United States reinsurer on the wrong end of a recent $37 million arbitration award claims that General Electric's Bermuda-based captive, EMLICO Ltd., is being rewarded for committing fraud.OneBeacon America Insurance Company, formerly known as Commercial Union Insurance Company, of Massachusetts, is seeking to overturn the June 19, 2003 arbitration ruling.
An SEC appointed Receiver has been criticized by a judge for not doing enough to recover assets of an $87 million fraud that were transferred offshore, including $61 million to Barclays Bank in the Bahamas.The target of the criticism is
Bermuda-based captive First Virginia Reinsurance Ltd. has a deficit of between $79 million and $111 million, according to a ruling at Bermuda Supreme Court.Details of the reinsurer's insolvency were contained in a written judgment on October 23, 2003 by Puisne Judge Ian Kawaley.
Bermuda-based life reinsurer Hampton Re, which was sponsored by JP Morgan, went into liquidation this month after less than three years in business."The reason for winding down the business is two-fold," Mary Sedarat, a spokesperson for J.P. Morgan Private Bank, told The Royal Gazette newspaper, which revealed the firm's closure on October 16.
An offshore hedge fund whose Board includes a director of the agency that regulates it has gone into liquidation. Beacon Hill Master Ltd. filed a voluntary winding-up petition at the Grand Court of the Cayman Islands on October 27, 2003. Theodore Bullmore and Simon Whicker, both of KPMG, have been appointed liquidators.
Section 304 Petition for Assistance in Insolvency Proceedings in Bermuda by Malcolm Butterfield and Michael Morrison, as the Foreign Representatives of First Virginia Reinsurance Ltd., at the U. S. Bankruptcy Court for the Eastern District of Virginia.
Arbitration proceedings in North Carolina regarding the failed Fortress Re aviation reinsurance pool was halted recently to allow emergency depositions to be taken in Japan.Hearings were already underway when Fortress Re Inc., of North Carolina, requested depositions of four current
A U. S. Bankruptcy Court in New York has issued a preliminary injunction freezing the assets of the Imperial Consolidated Group in the United States. The injunction, issued in September, 2003, also prohibits "all persons and parties in interest" from
The Bank of Bermuda, whose gross losses due to fraud over the last five years are in the region of $90 million, came close to being exposed to one of the biggest offshore scandals in recent times, if a suspected
Unsecured creditors of one of the main companies within the Imperial Consolidated Group have been told to expect a dividend of approximately 11 cents in the dollar. That is the "estimated outcome" for parties owed money by Imperial Consolidated Financiers Ltd. as forecast by the firm's administrators, Philip Lyon and Steve Woods, of Mazars Neville Russell.
A Florida receivables factoring group which is being sued for $170 million by a Cayman Islands bank is a defendant in a new action brought by a bank in Switzerland. In a lawsuit filed on August 27, 2003, EFG Private
Attorneys representing hedge fund boss Michael Lauer have been accused of hindering the investigation into his collapsed Lancer Offshore group, which is suspected of defrauding investors of more than $600 million. Richard Asche, Gerry Labush and Jack Litman were "playing
More than $600 million of the $1.15 billion invested in the Lancer Offshore group of hedge funds from 1995 to 2002 may be lost.The initial report of Lancer's receiver, Marty Steinberg, acting for the SEC, showed that investors put in
A syndicate of banks led by JPMorgan Chase Bank is the biggest creditor of ailing Bermuda-based specialty insurer Trenwick Group Ltd., with an outstanding claim of $183 million at August 20, 2003.The syndicate also includes Wachovia Bank, Credit Lyonnais (New York), Dresdner Bank (New York and Grand Cayman), Fleet National Bank, The Royal Bank of Scotland, ING Bank (London), Citibank, The Bank of Nova Scotia, State Street Bank and Trust Company, and Mizuho Corporate Bank.
A U. S. Bankruptcy Trustee has asked a court to apply sanctions against a Bermuda-registered group closely associated with former Premier Sir David Gibbons. It is part of an attempt by Barbara B. Stalzer to recover assets that she claims were fraudulently transferred by the NimsTec group to avoid paying its debts.
Lancer Offshore boss Michael Lauer has asked a court to vary an order freezing his assets so that he can meet claimed monthly living expenses of $93,000 and pay for his defense against allegations of fraud.
Two offshore entities have been named as defendants in a lawsuit filed in the United States by the Receiver of the Cash 4 Titles Ponzi Scheme, whose insolvency is more than $150 million.It has been alleged that Private Terms Ltd., c/o Morningstar Holdings Ltd., Nevis; Classic Terms Ltd., of the Cayman Islands; and their alleged owner, Gilbert M. Miller, of Duluth, Georgia, USA, profited by at least $3.2 million from the scheme.
Bruce Cowen, who was a senior officer with the collapsed Lancer Offshore group, has pleaded guilty to fraud conspiracy in the United States.Cowen pleaded guilty to one count of conspiracy to commit securities fraud, mail fraud and wire fraud at the U. S. District Court for the Southern District of Florida on August 21, 2003.
After the loss of a major lawsuit, Stirling Cooke Brown Insurance Brokers Ltd. has gone into administration in the United Kingdom.Paul Evans and Dan Schwarzmann, of PricewaterhouseCoopers, were appointed joint administrators on July 17, 2003 - nine days after a judgment in a U. K. High Court action filed by Sphere Drake Insurance.
The liquidators of New Cap Reinsurance Corporation (Bermuda) Ltd. have been granted a request for judicial assistance by a United States court.The decision on July 8, 2003 by the U. S. District Court for the District of Connecticut allows liquidators John McKenna and Gareth Hughes to depose Udayan Ghose.
July was a significant month for Mutual Risk Management, with two of its subsidiaries going into liquidation in the United States and a scheme of arrangement being approved for the company itself.The bad news for the firm came when liquidation orders were issued for Legion Insurance and Villanova Insurance by the Commonwealth Court of Pennsylvania on July 28.
A United States court has issued an order allowing the U. S. government to seize $660,000 held in an account at Credit Suisse First Boston in Switzerland.In an order dated May 12, 2003, the U. S. District Court for the Eastern District of Washington ruled that the funds came from bankruptcy fraud by Robert Wayne Kersey and Vickie A. Kersey.