Liberty Mutual Settles 1031 Embezzlement Fight For $1.7M

Law360, New York (June 29, 2011, 1:56 PM EDT) -- Liberty Mutual Co. on Monday agreed in California federal court to pay $1.7 million to receivers of a 1031 exchange company to end coverage claims tied to the exchange company’s alleged real estate embezzlement scheme.

U.S. District Judge James Ware signed off on a deal absolving Liberty Mutual of liability stemming from a commercial crime policy covering Excalibur 1031 Group, a subsidiary of Vesta Strategies LLC, whose owners were indicted in 2010 for allegedly running a $25 million Ponzi scheme.

U.S. Fire Insurance Co. originally launched...
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