Mutual Risk Management

In the Matter of Mutual Indemnity (US) Ltd. - Bermuda Supreme Court

Insurance officers David Alexander and Glenn Partridge conspired to defraud a participant in one of Mutual Risk Management's rent-a-captive programs, a Bermuda judge has ruled.

Judgment in the case of American Patriot Insurance Agency Inc., Kenneth Hendricks, and Diane Hendricks against Mutual Holdings (Bermuda) Limited, Mutual Indemnity (Bermuda) Limited, Glenn Partridge, David Alexander, Andrew Walsh, and Richard Turner at The Court of Appeal for Bermuda.

The now defunct Mutual Risk Management group has won a legal battle with a former client of its rent a captive program.In a judgment at Bermuda Supreme Court on July 9, 2010, Acting Puisne Judge Geoffrey Bell dismissed a claim

Application by American Patriot Insurance Agency Inc. and Diane M. Hendricks to take discovery from Eric Bossard and H. James Agnew for use in legal proceedings in Bermuda styled "Mutual Holdings (Bermuda) Limited v. American Patriot Ins. Agency, Inc. et al", filed at the U. S. District Court for the Eastern District of Pennsylvania.

The net deficit of Legion Insurance Company, a former operating subsidiary of Bermuda-based Mutual Risk Management Ltd., increased by $15 million to $637 million in the third quarter of 2007, according to the latest liquidators report.

The net deficit of Legion Insurance Company, a former operating subsidiary of Bermuda-based Mutual Risk Management Ltd., increased by $8 million to $622 million in the first six months of 2007, according to the latest liquidator's report. At June 30, 3007, Legion had assets of $2.73 billion and liabilities of $3.35 billion, reported the Commonwealth of Pennsylvania Insurance Department, which is liquidating Legion.

Mutual Holdings (Bermuda) Limited has filed a complaint in the United States to enforce a judgment for $2.5 million that it obtained against a California based insurance agency in Bermuda.Mutual Holdings filed an action against Sinclair Dwyer & Company Inc.

The net insolvencies of two former operating subsidiaries of Bermuda-based Mutual Risk Management Ltd. rocketed from $334.3 million to $852.6 million in 2006, according to their liquidator. The deficits of Legion Insurance Company and Villanova Insurance Company increased from $225.3 million to $614 million and from $109 million to $238.6 million, respectively, during the year.

Two former operating subsidiaries of Bermuda-based Mutual Risk Management Ltd. had a combined net deficit of $334.4 million as of December 31, 2005, according to their liquidator.Legion Insurance Company and Villanova Insurance Company had deficits of $225.4 million and $109 million, respectively, stated their Statutory Liquidator, Pennsylvania Insurance Commissioner Diane Koken, in her report for the fourth quarter of 2005.

Five banks have been ordered to provide details of accounts maintained by the AlphaStar group of companies, formerly known as Stirling Cooke Brown, to its Bankruptcy Trustee.An order directing The Bank of N.T. Butterfield & Son Ltd., Wachovia Bank, Bank of America, North Fork Bank and JP Morgan Chase Bank, NA to turn over the records to Trustee Richard O'Connell was issued at the U. S. Bankruptcy Court for the Southern District of New York on September 22, 2005.

Mutual Risk Management Ltd. has settled litigation with Boston based John Hancock Life Insurance Company, which MRM blamed for causing its collapse.MRM's civil complaint against Hancock was dismissed with prejudice at the U. S. District Court for the Eastern District

Just three months before its claim for hundreds of millions of dollars in damages is due to be tried, Mutual Risk Management Ltd. is involved in a discovery dispute with John Hancock Life Insurance Company.In a filing at the U.

A U. S. court has denied a petition by two Wisconsin based insurers to collect evidence from Mutual Indemnity (Bermuda) Ltd. and its President, David Alexander.The U. S. District Court for the Eastern District of Pennsylvania did not have jurisdiction

David Alexander, President of Mutual Indemnity (Bermuda) Ltd., is fighting an attempt by two insurers to take his testimony for a yet-to-be-filed lawsuit in the United States. A petition to take his testimony and collect evidence from Mutual Indemnity was filed by Aegis Corporation and Principal Insurance Managers, Inc., both of Brookfield, Wisconsin, at the U. S. District Court for the Eastern District of Pennsylvania on November 3, 2004.

New York-based fund manager Deltec Asset Management LLC, which specializes in working with distressed companies, has become a major shareholder in Mutual Risk Management Ltd.

Mutual Risk Management subsidiary Legion Insurance Company has been awarded $21.5 million in an arbitration against John Hancock Life Insurance Company.The award was for damages and expenses caused by Hancock's "failure to pay reinsurance proceeds to Legion", according to a

Mutual Risk Management has filed a lawsuit against one of the non-paying reinsurers that it blames for causing the cash-flow problems that led to the group's collapse. MRM is seeking compensatory and punitive damages against John Hancock Life Insurance Company, formerly John Hancock Mutual Life Insurance Company, of Boston, Massachusetts.

Negotiations are underway to settle a class action lawsuit filed by shareholders against Mutual Risk Management and several of its former officers and directors.Details are contained in a filing at the U. S. District Court for the Southern District of California on July 30, 2003 in which the defendants agreed to withdraw their motion to dismiss the complaint.

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 Pennsylvania judge has criticized state insurance regulators in the United States and reinsurers for failing to save two property and casualty subsidiaries of Bermuda-based Mutual Risk Management. On June 26, Judge Mary Hannah Leavitt granted petitions from Pennsylvania Insurance Commissioner Diane Koken to liquidate Legion Insurance Co. and Villanova Insurance Co.

One new civil complaint was filed against Mutual Risk Management in May - a month when the group announced a restructuring through a Scheme of Arrangement in an attempt to stave off liquidation.The action was brought by Stephen Friedberg against

Parties who sold the Clarendon Insurance Group to Hannover Re in 1999 had to accept $25 million less than an agreed price because two reinsurers stopped paying claims during sale negotiations, it has been alleged. The reinsurers, The John Hancock

Christopher Stone, ex-Managing Director of now-defunct, Dominica-based Investors Bank and Trust Ltd. was released from custody in Belgium in February on bail of 125,000 Euros, said a source; A default judgment for $130 million was entered against Bahamas-registered Vavasseur Corp. at the U. S. District Court for the Western District of Virginia on February 21, 2003 for its part in an international Ponzi scheme; Grenada Supreme Court issued a $125 million judgment against Van Arthur Brink, a.k.a. Gilbert Allen Ziegler, former head of the First International Bank of Grenada; Allen Wheatley, former Financial Secretary of the British Virgin Islands, was sentenced to serve five months in prison on February 17 after being found guilty of corruption charges; Cayman Islands-based businessman Kenneth Dart has acquired a 5.7 per cent stake in financially crippled, Bermuda-based insurance firm Mutual Risk Management; British trader Sean Alexander Quinn, 36, was released from prison in Barbados on December 5, 2002 after pleading guilty to an amended charge of money laundering; Receivers for the fraudulently-operated asset planning group Merrill Scott & Associates have found $1.03 million of assets in the Cayman Islands; The Bahamas Ministry of Finance expects to receive a report on the status of the financially-troubled Bahamas International Securities Exchange in the first week of March, 2003; The number of companies incorporating in the Cayman Islands has steadily decreased over the last three years, according to a report by Cayman Net News based on information provided by the Registry General; Florida-based Briton Edward Myles Chism Jr., 63, was taken into custody in Florida on February 7, 2003 - one day after being criminally indicted on three counts of tax evasion at federal court in Miami; Bermuda may be about to lose its grip at the top of the offshore world; and The Irish Minister for Justice has applied to Ireland's High Court for an order directing the Cayman Islands branch of Ansbacher International to pay US$3.1 million to cover the costs of a long-running inquiry into corruption and tax evasion.

Mutual Risk Management has filed a bankruptcy petition in the United States and is seeking an automatic stay of all of the legal proceedings that have been filed against it and a ban on new actions.

Cayman Islands-based businessman Kenneth B. Dart, whose family made a fortune in the Styrofoam cup business, has acquired a 5.7 per cent stake in financially crippled Mutual Risk Management. Dart's firm Ross Financial Corporation, which is domiciled in Cayman, has acquired 2,377,600 common shares, according to a Dart-signed document dated February 13, 2003 that was filed with the SEC.

Major creditors of Mutual Risk Management Ltd. are scheduled to meet in Bermuda on February 5, 2003 at which they will be asked to approve a proposed Scheme of Arrangement for the financially-troubled firm.Under the proposals, senior debt-holders would become the majority owners of current MRM-subsidiary MRM Services Ltd., doing business as IAS Park.

Re. Mutual Risk Management Ltd. vs. N/A - Bermuda Supreme Court

At a time when Mutual Risk Management was desperate for cash to meet its liabilities, its then Chairman and CEO, Robert Mulderig, owed the firm an advance of $318,303, according to an SEC filing. Details of the debt, which has

Robert Mulderig has retired as Chairman and CEO of financially troubled Mutual Risk Management Ltd., effective November 1, 2002, according to an MRM filing with the SEC. He has been replaced by David Ezekiel, who is President and Managing Director

Mutual Risk Management has made a $100 million offer to the Pennsylvania Insurance Department to settle all claims relating to its subsidiary in rehabilitation, Legion Insurance Co., it has been claimed.Details about the purported offer are contained in the latest of several civil lawsuits filed by clients and shareholders against the MRM group in the United States and Bermuda.

Two lawsuits that may be winding up petitions have been filed against companies that are part of the Mutual Risk Management Group.Both actions were filed at Bermuda Supreme Court under The Companies Act 1981, according to a source. This is

Three new civil lawsuits - one in Bermuda and two in the United States - have been filed against members of the Mutual Risk Management group.On July 30, 2002, Aegis Corporation and Principal Insurance Managers filed an action against Mutual Indemnity (Bermuda) Ltd. at Bermuda Supreme Court.

Two more class action lawsuits were filed against Mutual Risk Management Ltd. during July, bringing the number of shareholder actions to five over the last two months.As with the previous suits, they were both filed in the U. S. District Court for the Southern District of California and the defendants in each were MRM, Robert A. Mulderig, James C. Kelly and Andrew Cook.

Aegis Corporation and Principal Insurance Managers vs. Mutual Indemnity (Bermuda) Limited - Bermuda Supreme Court

Three Class Action lawsuits were filed against Bermuda-based insurance firm Mutual Risk Management and three of its current and former officers in June. The complaints were all filed at the United States District Court for the Southern District of California, in San Diego, on June 7, June 24 and June 25.

A class action lawsuit has been filed in California against Mutual Risk Management Ltd. and three of its current or former senior officers, alleging misrepresentation of the firm's finances. The civil lawsuit was filed at the United States District Court for the Southern District of California on June 7, 2002.

Stephen Friedberg vs. (1) Mutual Indemnity Limited et al. - Bermuda Supreme Court

A United States-based trucking concern has obtained a $3 million asset freeze order against the financially troubled Mutual Risk Management group. Bermuda Supreme Court issued the order on April 25, 2002 after an application that same day by Franklin Logistics Inc.

Franklin Logistics, Inc. vs. 1. IPC Mutual Holdings Ltd. and 2. Mutual Indemnity Ltd. - Bermuda Supreme Court

The shares of Mutual Risk Management have been de-listed from the New York Stock Exchange.   The shares are now trading on the Pink Sheets (www.pinksheets.com) under the symbol 'MLRM'.

Mutual Risk Management subsidiaries Legion Insurance Co. and Villanova Insurance Co. have gone into "voluntary rehabilitation" following court action by Pennsylvania Insurance Commissioner Diane Koken. The rehabilitation orders, which were granted by the Commonwealth Court of Pennsylvania on March 28, 2002, become effective April 1, 2002.

Mutual Risk Management subsidiaries Legion Insurance Co. and Villanova Insurance Co. have gone into “voluntary rehabilitation” following court action by Pennsylvania Insurance Commissioner Diane Koken. The rehabilitation order, which was granted by the court on March 28, 2002, becomes effective April 1, 2002.

Seven Bermuda insurers reported fourth quarter earnings in February, with Mutual Risk Management, XL Capital and Annuity and Life Re posting losses and ACE, IPC Holdings, PartnerRe and Scottish Annuity reporting profits.

The collapse of its share price to penny stock status, downgrade of its credit ratings, breach of debt covenants and uncollectible reinsurance are not all Mutual Risk Management has to worry about. A jury trial is due to start at Gwinnett Superior Court, Georgia on July 29, 2002 in which MRM is a defendant in a civil lawsuit filed under the Racketeering Influenced and Corrupt Organizations Act.

The share price of Mutual Risk Management fell to an all-time low of $2.72 during morning trading on the New York Stock Exchange today after the troubled company announced it was delaying the release of its 2001 earnings.

Mutual Risk Management announced on January 15, 2002 that it had filed a Shelf Registration Statement with the SEC for up to $200 million of newly issued Common Shares.

Mutual Risk Management's problems worsened in December when the firm announced that it expects to report a fourth-quarter loss after putting aside $30 million to pay larger than expected claims.This prompted an immediate negative response from credit rating agencies, with Standard & Poor's raising "concerns" about the ability of the firm's management to pull it through its crisis.

Mutual Risk Management Ltd. and two of its subsidiaries have been named as defendants in a civil lawsuit filed in California under the Racketeering Influenced and Corrupt Organizations Act.The action has been brought by Los Angeles based law firm Hollins

Mutual Risk Management announced on September 20 that it had completed the restructuring of its operations into two separate holding companies.One of the holding firms will be for its Specialty Insurance company business and the other for its Corporate Risk