Costa Rican Insurer Hit With $108M Judgment For Fraud Role

Law360, New York (July 10, 2012, 7:07 PM EDT) -- The U.S. Securities and Exchange Commission won a $108.4 million judgment in Virginia federal court Tuesday against Costa Rica-based Provident Capital Indemnity Ltd., which sold reinsurance bonds backing life insurance investments, for its role in a $485 million criminal fraud.

The company pled guilty to mail and wire fraud conspiracy in April and is liable for $43.6 million in fraudulently gained profits plus $51.1 million in interest. The court also ordered it to pay a $13.7 million civil penalty.

According to prosecutors, between at least 2004...
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Case Information

Case Title

Securities and Exchange Commission v. Provident Capital Indemnity, LTD et al


Case Number

3:11-cv-00045

Court

Virginia Eastern

Nature of Suit

Securities/Commodities

Judge

John A. Gibney, Jr

Date Filed

January 19, 2011

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