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Offshore insurer’s attorney-shareholder indicted for fraud and money laundering

A New York attorney who provides securities law services to, and became a major shareholder of, Bermuda/Barbados-based, would-be insurer River Capital Group Inc. has been indicted for stock fraud and money laundering in the United States. Martin Eric Weisberg was indicted at the U. S. District Court for the Eastern District of New York on August 15, 2007. The indictment was sealed until October 19 - the same day that the U. S. Securities and Exchange Commission filed a civil complaint against Weisberg at the same court.

Bermuda insurance license reject goes to Barbados, teams up with dubious group

A wannabe Bermuda insurer whose license application was turned down in 2004 has resurfaced in Barbados, where it has teamed up with a group whose principals include a convicted criminal. The Barbados Supervisor of Insurance issued an insurance license to River Reinsurance Limited on December 16, 2005. 

Would-be offshore insurer has ties to convicted fraudster

A New York-based attorney with a conviction for securities fraud is an insider in a penny stock firm controlled by the principals of Bermuda-based Lines Overseas Management, OffshoreAlert can reveal. The involvement of Edward Marvin Grushko casts further suspicion on River Capital Group Inc., which is raising money from the public by claiming it intends to operate as a Bermuda insurer without disclosing that two licensing applications were turned down by the Insurance Admissions Committee of the Bermuda Monetary Authority last year and that no further application has been made since then.

River Capital reports another loss

A penny stock firm controlled by the senior officers of Bermuda-based investment firm Lines Overseas Management reported a net loss of $778,928 for the 12 months ended December 31, 2004, according to its recent 10K filing with the SEC, increasing its deficit to $1.08 million.However, River Capital Group Inc.'s share price soared during the year, hitting a high of $6.50 on the Pink Sheets market, despite the firm having no full-time employees, no revenue and, some would say, no future.

River Capital Group auditor resigns

The auditor of River Capital Group Inc., which appears to be controlled by investment firm Lines Overseas Management and is associated with ex-Aon (Bermuda) boss Robin Spencer-Arscott, has resigned.No explanation for the resignation of Fort Lauderdale, Florida-based Sweeney, Gates & Co. was given in an SEC filing on March 3, 2005 other than to state there were no accounting disagreements.

River Capital still claims to be seeking Bermuda license, also eyes Barbados

Delaware-domiciled River Capital Group Inc., which is controlled by brothers Scott and Brian Lines, of investment firm Lines Overseas Management, is still maintaining that an affiliate's application for a Bermuda insurance license is alive - even though it appears to have died many months ago.