Feds Accuse Life Insurance Bond Co. Of $670M Fraud

Law360, New York (January 20, 2011, 2:51 PM EST) -- Federal authorities have hit a Costa Rica-based company that provides guarantee bonds on life insurance settlements with civil and criminal actions accusing it of running a $670 million fraud scheme.

In a suit filed Wednesday in the U.S. District Court for the Eastern District of Virginia, the U.S. Securities and Exchange Commission said Provident Capital Indemnity Ltd. misrepresented its ability to meet its obligations on the bonds. The commission also charged Provident President Minor Vargas Calvo and the offshore company's purported outside auditor, Jorge L. Castillo,...
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