US Fire, 1031 Co.’s Receiver Settle Fraud Coverage Row

Law360, New York (December 14, 2011, 2:03 PM EST) -- U.S. Fire Insurance Co. and the receiver for a 1031 exchange company whose owners allegedly ran a real estate embezzlement scheme have settled their coverage dispute in California federal court for $750,000, according to a court filing Tuesday.

In a motion for approval of the settlement, Thomas Dillon, the receiver for Vesta Strategies LLC, said the proposed payment from U.S. Fire is sound and fair because the outcome of the litigation is uncertain, among other factors.

“The settlement was negotiated in good faith and the result...
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