Federal Insurance, Bank Settle $17M Fraud Loss Spat

Law360, New York (October 5, 2009, 5:25 PM EDT) -- Carolina First Bank and parent South Financial Group have agreed to settle a heated dispute with Federal Insurance Co. over its denial of financial institution insurance coverage for a $17 million loss the bank sustained in connection with an allegedly fraudulent real estate scheme, according to the federal judge presiding over the case.

Judge Henry Herlong of the U.S. Court for the District of South Carolina wrote in an order Friday that the case had been dismissed without costs and without prejudice, saying both parties had...
To view the full article, register now.