American Automobile Off Hook In Ponzi Scheme Suit

Law360, New York (August 13, 2009, 6:50 PM EDT) -- Two Ponzi scheme victims are out $825,000 after a judge ruled that American Automobile Insurance Co. has no duty to indemnify an insurance marketing company associated with the alleged scam.

AAIC has no duty to defend or indemnify its policyholder LifeCo Inc., an insurance marketing company whose president allegedly sold fraudulent investment notes, said Judge Richard Matsch of the U.S. District Court for the District of Colorado in an opinion issued Tuesday.

The decision, which grants an AAIC motion for summary judgment, effectively denies the Ponzi...
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