NY Judge Holds Ponzi Schemer Misled Insurer, OKs Discovery

Law360, New York (March 20, 2014, 5:59 PM EDT) -- A New York federal judge on Thursday held that an accounting firm tied to a $2 million Ponzi scheme made serious misrepresentations in its application for insurance from Continental Casualty Co., while allowing discovery into whether Continental promptly tried to rescind the policy.

Continental had little trouble persuading U.S. District Judge Cathy Seibel that former Marshall Granger & Co. LLP executive Laurence Brown made significant misrepresentations on the accounting firm's insurance application, which he submitted while perpetrating a securities fraud on Marshall's clients.

“Common sense dictates...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.