Insurer Escapes Fraud, RICO Claims In $220M Ponzi Suit

Law360, New York (February 2, 2012, 6:47 PM EST) -- A Michigan federal judge on Thursday pared a suit accusing Jackson National Life Insurance Co. of fraud tied to Diversified Lending Group Inc.'s alleged $220 million Ponzi scheme, ruling the suit failed to allege the insurer had directly made misstatements to investors.

U.S. Judge Gordon J. Quist dismissed claims for negligent misrepresentation, aiding and abetting fraudulent misrepresentation and intentional disclosure, as well as a claim under the Racketeer Influenced and Corrupt Organizations Act, while leaving several other claims intact.

The investors' complaint alleges Jackson helped carry...
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