After two insurers detected a fraudulent premium evasion scheme perpetrated by policyholders, their successors in interest, and the owner/officer control group, the insurers brought RICO and fraud charges against them. When the multi-million dollar settlement agreement was breached, the insurers sued one of the executive officers who had breached his separate personal guaranty to pay about 28% of the settlement money promised by Defendants. On appeal to the Fifth Circuit from a district court order declining to enforce the guaranty, Plaintiffs won final summary judgments validating the enforceability of the seven figure principal guaranty.
Insurers Brought Rico and Fraud Charges Against Policyholders
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