Banyon Trustee Sues Insurers To Cover $70M In Ponzi Losses

Law360, New York (August 27, 2012, 9:25 PM EDT) -- The trustee for the bankrupt parent company of Banyon Capital LLP, a hedge fund linked to convicted Ponzi schemer Scott W. Rothstein, sued a collection of eight insurers in Florida bankruptcy court on Friday over their attempts to dodge $70 million in commercial crime insurance coverage.

Robert Furr, Chapter 7 trustee for Banyon 1030-32 LLC, filed an adversary complaint in Banyon’s bankruptcy proceeding against the insurers, who say contracts indemnifying the company for losses resulting from Rothstein’s theft are void as a result of misrepresentations made...
To view the full article, register now.