Insurer Aims To Avoid Defense Of Coral Employee Fraud

Law360, Chicago (September 29, 2011, 6:17 PM EDT) -- Aspen Specialty Insurance Co. sued Coral Mortgage Bankers Corp. and its president on Tuesday in New Jersey seeking a declaration that it has no duty to defend them in a lawsuit launched after a former Coral employee pled guilty to stealing investor funds.

The insurer alleges that Coral and its president and owner, Mark Lichtschein, knew about an FBI investigation into former Coral office owner David Rubin's fraud scheme and subsequent indictment before their Aspen policy took effect, but failed to disclose the issue until several...
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