Costa Rican Insurer Hit With $108M Judgment For Fraud Role

Law360, New York (July 10, 2012, 7:07 PM EDT) -- The U.S. Securities and Exchange Commission won a $108.4 million judgment in Virginia federal court Tuesday against Costa Rica-based Provident Capital Indemnity Ltd., which sold reinsurance bonds backing life insurance investments, for its role in a $485 million criminal fraud.

The company pled guilty to mail and wire fraud conspiracy in April and is liable for $43.6 million in fraudulently gained profits plus $51.1 million in interest. The court also ordered it to pay a $13.7 million civil penalty.

According to prosecutors, between at least 2004...
To view the full article, register now.