Vesttoo news

Court filings and confirmation from sources have revealed a missing piece of information related to the invalid or fraudulent letter of credit (LOC) issues affecting Vesttoo facilitated collateralized reinsurance deals, with a Hong Kong investor group named Yu Po listed as a target for pre-trial discovery.

After broker Aon’s segregated accounts and transformer company White Rock Insurance (SAC) Ltd. and the joint provisional liquidators of cells of the structure, filed a Chapter 15 to gain greater control of the cells exposed to the Vesttoo fraud issue, the insurtech has now filed to have White Rock and the JPLs held in contempt […]

The Vesttoo issues of invalid, fake or fraudulent letters of credit (LOCs) backing reinsurance deals provides “a depressing reminder of what can go wrong” when compliance fails to identify risks, according to Joe Schmidt, fintech investment partner at venture capital giant Andreessen Horowitz.

A new filing in the Vesttoo bankruptcy case provides a more detailed view of the scale of the alleged fraud, as Aon’s segregated accounts and reinsurance transformer company White Rock Insurance (SAC) Ltd. notes that there were 37 letters of credit (LOCs) that were likely invalid, which represented some $2.35 billion in value.

Porch Group subsidiary Homeowners of America Insurance Company (HOA), a managing general agent (MGA) and insurance carrier hybrid, has now filed to appear as a creditor in the Chapter 11 bankruptcy case of beleaguered insurtech Vesttoo, as HOA looks to protect its rights and any possible recoveries that can be made.

Two of the co-founders of under-fire insurtech Vesttoo have now been fired by the Board, with CEO Yaniv Bertele and Chief Financial Engineer Alon Lifshitz now officially removed from the company, and a new allegation has been reported, that a 2019 transaction facilitated by Vesttoo also had a fake letter of credit (LOC).

During its bankruptcy case, beleaguered insurtech Vesttoo has been approved by the court to continue paying its staff, including certain employee benefits and expenses, but at a hearing this week the US Trustee balked at the suggestion terminated staff and founders may receive payments.

The latest in the Vesttoo bankruptcy case, is that the insurtech’s lawyers have engaged with counsel for Aon’s White Rock Insurance (SAC) Ltd. and the Joint Provisional Liquidators for the White Rock cells that are subject to Bermuda court action, coming to an agreement for an order that would enforce an automatic stay on an […]

Clear Blue Insurance Group is the first external organisation that has signed up to appear in the Chapter 11 bankruptcy case of beleaguered insurtech Vesttoo, as the fronting specialist looks to protect its rights as a possible creditor.

As we suspected might happen, Vesttoo is indeed claiming ownership of the White Rock Insurance (SAC) Ltd. segregated cells or accounts that are subject to the legal action that broker Aon’s White Rock Insurance SAC vehicle alongside regulator the Bermuda Monetary Authority (BMA) began last week.