Guilty Plea Protects Insurer Starr In $31M Kickback Case

Law360, New York (April 24, 2014, 3:46 PM ET) -- Starr Indemnity & Liability Co. doesn't have to cover security contractor Protection Strategies Inc.’s defense costs stemming from allegations it defrauded NASA and other agencies in a $31 million kickback scheme now that several PSI executives have pled guilty, a Virginia federal court said Wednesday.

U.S. District Judge Liam O’Grady granted Starr’s motion for summary judgment, supporting the insurance company’s claim that it was not obligated to cover PSI’s defense costs after a guilty plea by the company’s officers. The guilty pleas triggered four exclusions in...
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