The Vesttoo fraud saw billions of dollars of letter of credit (LOC) collateral found to be invalid, as a sophisticated fraud involving actors across the globe forged LOCs and invented investors, to back Vesttoo facilitated reinsurance deals. The scandal showed up a failure of the reinsurance industry’s KYC processes and resulted in a drawn-out court case and bankruptcy process.
Broking giant Aon and fronting specialist Clear Blue Insurance have put their trading relationship first to reach an out of court settlement in relation to a lawsuit over the reinsurance letter of credit (LOC) fraud perpetrated by insurtech Vesttoo, Artemis has been told by a number of market sources.
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In the latest twist in the long-running Vesttoo saga, where fraudulent collateral was found to be sitting behind reinsurance deals via letters of credit (LOC) that turned out to be forged, the creditors to the failed insurtech’s bankruptcy trust are now suing broker Aon and China Construction Bank, alleging fraudulent conduct and blaming them for […]
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A bank transfer has been highlighted in an ongoing Vesttoo fraud legal case, showing $4 million in funds sent to a China Construction Bank account in the name of Yu Po Holdings, the entity that was purported to have been the main investor providing collateral behind reinsurance deals where letters of credit (LOC) proved to […]
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In its New York lawsuit against China Construction Bank (CCB) over the Vesttoo fraud, Aon’s segregated accounts company White Rock Insurance (SAC) Ltd. has raised the recent emergence of a criminal bribery case in Hong Kong and suggests this means CCB must have relevant communications and documentation that would support its own claims.
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A former China Construction Bank employee is facing bribery charges in Hong Kong, accused of accepting payments in a crypto currency amounting to US $470,000 from a Vesttoo employee, to authenticate false letters of credit and collateral documentation.
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The lawsuit filed by Porch Group against broker Gallagher Re regarding the Vesttoo reinsurance letter of credit (LOC) collateral fraud has been dismissed with prejudice by the Texas court. But Porch has said it intends to continue to pursue recourse in the matter.
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Porch Group, the owner of insurer Homeowners of America Insurance Company (HOA) which was impacted by the Vesttoo reinsurance letter of credit (LOC) collateral fraud, has agreed a $7.1 million settlement over constructive trust claims with the Vesttoo Creditors Liquidating Trust, court documents show.
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You would be forgiven for thinking the industry had moved on from the debacle that was the Vesttoo reinsurance letter of credit (LOC) fraud, but legal action continues and the latest case to be filed sees fronting specialist Clear Blue Insurance suing China Construction Bank for damages.
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Aon’s segregated accounts company White Rock Insurance (SAC) Ltd. has filed a lawsuit in New York against China Construction Bank, alleging an “inside man” at the bank had represented that letters of credit (LOC) involved in the Vesttoo fraud were authentic, and claiming a minimum $140 million in damages from the bank for the losses […]
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The management of fronting specialist Clear Blue Insurance are praised for the rapid and determined response to the issues that arose when the company found itself caught up in the reinsurance letter of credit (LOC) fraud perpetrated by Vesttoo, according to rating agency KBRA.
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