Insurer Sues Investment Co. To Avoid FINRA Coverage

Law360, New York (October 27, 2010, 2:04 PM EDT) -- Aspen Insurance UK Ltd. has sued the now-closed Chicago Investment Group LLC, claiming it has no duty to defend or cover the brokerage in a $2 million Financial Industry Regulatory Authority arbitration in which investors claim they were induced into buying shares in an ill-fated premium tequila company.

Chicago Investment Group broker Michael J. Mediano ran afoul of the insurer's $1 million professional liability policy because, in selling the shares, he was not acting solely in the interests of the brokerage, according to a complaint filed...
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