GSC Employee Wants D&O Policy To Cover SEC Defense

Law360, New York (August 22, 2011, 5:01 PM EDT) -- A GSC Group Inc. employee accused of letting a hedge fund sell complex mortgage-backed securities to unwitting investors asked Friday that the judge overseeing the investment management firm's bankruptcy let him use a Lexington Insurance Co. policy to fund his defense.

Edward S. Steffelin is seeking the directors and officers coverage in his defense against the U.S. Securities and Exchange Commission's civil securities fraud suit alleging that he let Magnetar Capital LLC select and short the collateralized debt obligations in a $1.1 billion offering called Squared...
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