Provident Capital Admits To Reinsurance Bond Scheme

Law360, New York (April 20, 2012, 4:47 PM EDT) -- Provident Capital Indemnity Ltd. changed its tune Wednesday and pled guilty in Virginia federal court to one count of conspiracy for lying about its ability to meet obligations on hundreds of reinsurance bonds the company issued to back life insurance investments.

The Costa Rica-based company reached a plea agreement admitting to one count of conspiracy to commit mail and wire fraud, which carries a penalty of between one and five years of probation and up to a $500,000 fine. PCI initially pled not guilty to that...
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