Insurer Off Hook For $5M Alleged BJ Services Loan Fraud

Law360, New York (April 24, 2012, 4:55 PM EDT) -- A Texas federal judge ruled Monday that Great American Insurance Co. doesn't have to cover about $5 million in fraudulent bank loans that former BJ Services SRL executives allegedly stole, since BJ's losses didn't result directly from their actions.

Great American had issued a commercial crime policy to oil and gas services firm BJ Services, which sought coverage in 2011 over three transactions in which a pair of Latin America-based executives allegedly obtained bank loans in the company's name without permission and spent the money on...
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