Funds controlled by Goldman Sachs have paid $450,000 to settle litigation brought by the Bankruptcy Trustee of Bermuda domiciled ex insurance broker AlphaStar Insurance Group, formerly known as Stirling Cooke Brown Holdings, which collapsed in 2003 after committing a fraud
Ten weeks after a judge dismissed the main counts of an $80 million claim against Goldman Sachs and others, the Bankruptcy Trustee of Bermuda-based AlphaStar Insurance Group Ltd., formerly known as Stirling Cooke Brown Holdings Ltd., has filed an amended complaint in which he is seeking reduced damages of just $815,638. The amended complaint was filed at the U. S. Bankruptcy Court for the Southern District of New York on April 29, 2008 by Richard E. O'Connell, the Bankruptcy Trustee of AlphaStar and several related entities.
An action in New York to hold Goldman Sachs and several former officers and directors of Bermuda-based Stirling Cooke Brown Holdings Ltd. liable for allegedly "squandering" $80 million of the fraudulently-operated insurance broker's corporate assets has failed. On February 19, 2008, Chief U. S. Bankruptcy Judge Stuart M. Bernstein dismissed all of the core counts alleging fraud and breach of fiduciary duty against the Goldman Sachs and the D&O defendants in a complaint brought by the group's Bankruptcy Trustee, Richard O'Connell, at the U. S. Bankruptcy Court for the Southern District of New York.
Goldman Sachs refused to pull the plug on one of the biggest frauds the insurance industry has ever known for fear it would de-rail the 137-year-old investment banker's own $3.66 billion IPO in May, 1999, it has been claimed.The extraordinary allegation appears in a civil complaint that was filed recently in the United States by the Bankruptcy Trustee of Bermuda-based broker AlphaStar Insurance Group Ltd., formerly known as Stirling Cooke Brown Holdings Ltd., and several of its subsidiaries and affiliates.
The Bankruptcy Trustee of the Bermuda-based group formerly known as Stirling Cooke has received court approval to subpoenas to three former officers as part of an investigation into its financial affairs. In an order dated December 19, 2005, U. S. Bankruptcy Judge Stuart M. Bernstein, sitting at the U. S. Bankruptcy Court for the Southern District of New York, ordered that subpoenas can be served on former officers Stephen A. Crane, President, Chairman, and CEO; Anthony J. Del Tufo, Chief Financial Officer; and James Lawless, General Counsel, compelling them to provide documents and oral testimony.
Even in bankruptcy, the now defunct, fraudulently operated Stirling Cooke Brown Insurance group is causing chaos in the insurance industry.The latest Bermuda firm to be affected is Max Re Capital Limited, which is a defendant in a civil lawsuit concerning
Collapsed broker AlphaStar Insurance Group may seek compensation from one of its founders, Nicholas Brown, over the alleged mismanagement of the company.In other news, the company has drastically revised a controversial bonus plan to pay bonuses totaling $1.6 million to
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.
Letter to the Editor of OffshoreAlert from Stephen Crane, CEO of AlphaStar Insurance Group, formerly known as Stirling Cooke.
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".
The acrimonious, on again, off again proposed purchase of AlphaStar Insurance subsidiary Realm National Insurance Co. by Atlanta Insurance Marketing Inc, of Georgia, has become even uglier.Already subject to legal action between the intended seller and buyer, a new lawsuit
Two UK subsidiaries of the Bermuda-based AlphaStar Insurance Group, formerly Stirling Cooke Brown Holdings, have lost a UK High Court judgment that has implications for many related reinsurance lawsuits and arbitrations around the world.AlphaStar's share price fell from 13 cents to seven cents per share after the judgment was released today and many in the industry expect the decision to render the long-troubled firm insolvent.
Crisis firm Stirling Cooke Brown Holdings has changed its name to AlphaStar Insurance Group Ltd., effective September 30, in its latest attempt to shed itself of its poor image.The firm stated that its "Board of Directors had decided that a
Goldman Sachs controlled Stirling Cooke Brown's problems worsened this month as the firm announced that its reinsurance subsidiary, Comp Indemnity Reinsurance Company Ltd., had become insolvent.News of CIRCL's insolvency was contained in the firm's 10Q filing with the SEC on
Stirling Cooke Brown's shareholders voted at its AGM on May 23 to approve changing the firm's name to Atlantic Star Insurance Company Ltd. - a move which was disclosed two months ago in InsideBermuda. The make-over is part of a continuing attempt by the company to rid itself of the stench of its founders Nicholas Brown and Mark Cooke.
Stirling Cooke Brown Holdings has refused to explain a mysterious $1.4 million investment write-down that was disclosed in its latest 10Q filing with the SEC. The company is being so secretive about the write-down that it has created an irresistible impression that it has something to hide.
Stephen Crane, the head of Bahamas-based jewellery group Colombian Emeralds International, has brought a libel action against two Bermudians accused of posting defamatory messages about him on the Internet. Bermuda Supreme Court has already issued an Anton Piller Order that allowed representatives of Crane to search the homes of Peter Crisson and Larry Booker and jeweller H. S. & J. E. Crisson, which Crisson heads and where Booker works.
Offshore regulators apparently uninterested in scams exposed by OffshoreAlert; NimsTec's 3-D cameras offered for sale as "collector's items" over the Internet; Marc Harris has t-shirt with the slogan: "David Marchant is alive because killing him would be a crime"; As General Election looms, Progressive Labour Party tipped to win power in Bermuda for the first time; Dominion of Melchizedek offers a variety of fraudulent products and services; and Little Switzerland contemplates legal action after proposed purchase of Colombian Emeralds International falls through.