Barbados insurer sued in the US
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| Published on Tuesday, August 12, 2008 |
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By Tricia N. Henry
Caribbean Net News Staff Reporter
Email: tricia@caribbeannetnews.com
BRIDGETOWN, Barbados: Two civil lawsuits have been filed against Barbados-licensed insurer, Strategy Insurance Limited (SIL) over a two-day period at federal courts in the United States during the month of July.
Financial newsletter Offshore Alert, who had exposed the insurer’s reportedly questionable activities two years ago, has reported that SIL was sued on July 15, 2008 at the US District Court for the District of Utah and then faced another civil suit the next day at the US District Court for the District of Nevada.
The first action involves allegations against SIL that the insurer refused to satisfy a performance and payment bond regarding a troubled construction project. The plaintiff in this case has estimated its damages as a result to be over $11.5 million.
In the second suit, according to reports by Offshore Alert, the causes of action include securities fraud, fraud, fraudulent transfer, breach of contract, intentional misrepresentation, breach of covenant of good faith and fair dealing, conversion, civil conspiracy, and breach of fiduciary duty.
The plaintiffs are reportedly seeking damages totaling $1.6 million regarding an unpaid loan, comprising $400,000 in principal, $143,334 in interest and $1,075,000 in late fees.
In the complaint, it is claimed that SIL acted in collusion with other parties in a scheme meant to defraud the plaintiffs. It is alleged that after having made an arrangement to fund hard money loans, the plaintiffs were encouraged in writing to enter into a loan transaction whereby they would receive Letters of Commitment from the defendants, including SIL as security for the loan.
The loan agreement called for the repayment of the principal and interest on or before December 13, 2007; however, when SIL was called upon to make the payment, none had been forthcoming.
SIL has since denied issuing a Letter of Commitment to the plaintiffs and has claimed that the company has never received instructions to do so, neither the requisite fees to perform the task.
Offshore Alert reported that attempts were made to contact the manager of Strategy Insurance in Barbados, Lennox Gibbs at its Barbados telephone number – one of the three contact numbers listed on their website -- however, these attempts were unsuccessful.
The website is no longer available online.
Offshore Alert said it has, in the past, made attempts to contact Gibbs, but was told by an employee at the firm that she was “not authorized” to give out his email address.
Further research by Offshore Alert has indicated that SIL’s ultimate parent company, Strategy International Insurance Group, Inc., had its charter forfeited by the Texas Secretary of State on February 9, 2007 for failure to pay state taxes. The company's officers and directors, as last reported to the Texas Secretary of State, included Lennox Gibbs. Furthermore, Offshore Alert found that Strategy International Insurance Group Inc.'s shares were de-listed by the OTC Bulletin Board, effective September 19, 2006, for failure to meet reporting requirements of the US Securities and Exchange Commission (SEC).
According to Offshore Alert, the company, whose ticker symbol is SGYI, has not reported to the SEC since October 10, 2006.
Meanwhile, the office of the Barbados Supervisor of Insurance told Offshore Alert that SIL was still licensed as an insurer in Barbados. | | | | Reads : 72 |
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