Aspen Tries To Duck Bill For Alleged $3M Stock Scam

Law360, New York (September 24, 2010, 12:37 PM EDT) -- Aspen Insurance UK Ltd. has filed suit to avoid covering an alleged $3 million stock scam run by policyholder Chicago Investment Group LLC, a broker-dealer.

London-based Aspen filed its complaint Thursday in the U.S. District Court for the Northern District of Illinois, saying several exclusions in its policy meant it had no duty to defend or indemnify CIG in an underlying lawsuit over alleged stock fraud.

Aspen also named the plaintiff in the underlying suit, aggrieved investor Banyan Investors LP, as a defendant.

Chicago-based CIG allegedly...
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