Insurer, Broker Settle Dispute Over $400M Ponzi Scheme

Law360, New York (November 7, 2011, 5:38 PM EST) -- RLI Insurance Co. has settled a long-running California lawsuit claiming an insurance broker tricked it into issuing surety bonds to further Commercial Money Center Inc.'s $400 million Ponzi scheme, which allegedly also targeted banks, a Friday order said.

The suit is one of many consolidated in multidistrict litigation over Escondido, Calif.-based CMC's alleged Ponzi scheme, under which the now-defunct company developed, bonded, pooled and sold bogus equipment and vehicle leases to banks.

RLI claimed in the lawsuit that defendants Michael J. Anthony and his brokerage firm...
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Case Information

Case Title

RLI Insurance Co v. Guardian Financial, et al

Case Number



California Southern

Nature of Suit

Contract: Other


Jeffrey T. Miller

Date Filed

November 22, 2002

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