Law Firm's Fraud Role Rescinds Coverage, Suit Says

Law360, New York (May 18, 2011, 4:31 PM EDT) -- Liberty Insurance Underwriters Inc. sued Reback & Potash LLP in New York on Monday to rescind four professional liability policies, claiming the firm lied about its involvement in an alleged $1.4 million criminal mortgage fraud scheme.

According to the suit, a Westchester County, N.Y., grand jury had indicted eight people, including R&P's sole two partners, David Reback and Eileen Potash, for taking part in a scheme that defrauded four different families and two mortgage lenders. Reback pled guilty to all counts in July, while Potash was...
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