Insurer Wins Coverage Row Over Ponzi Scheme Suits

Law360, New York (May 5, 2011, 8:19 PM EDT) -- A South Carolina federal judge ruled Thursday that Continental Casualty Co. wasn’t obligated to pay to defend Battery Wealth Management Inc. in a series of suits related to a $66 million Ponzi scheme orchestrated by one of its executives.

U.S. District Judge William Bertelsman held that Continental’s insurance policies with Battery clearly barred coverage of claims involving Albert Parish’s fraud, since Parish, Battery’s former vice president, knew when the company applied for the policy that his crimes could result in a future claim.

“It is self-evident...
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