Amid $155M Ponzi Scheme Fallout - Law.com
What You Need to Know
- The insurer claims its policyholder intentionally omitted its involvement in Ponzi scheme litigation when it applied for professional liability insurance policies in 2019 and 2020.
- Through its attorney, the Coral Gables law firm denied Avila's awareness of and involvement in the fraud and vowed to vigorously defend the action.
- The insurer also sued a Miami securities firm involved in the Ponzi scheme this March on similar grounds.
Fallout from the $155 million Biscayne Capital Ponzi scheme reached Avila Law last week when the 22-lawyer Coral Gables firm was sued by its professional liability insurer on claims that the law firm misrepresented its involvement in litigation tied to the scheme.
The complaint, filed by Security National Insurance Co. in the U.S. District Court for the Southern District of Florida, alleges that Avila omitted its knowledge of the scheme and involvement in subsequent lawsuits filed by investors and liquidators when it applied for two professional liability insurance policies spanning 2019 to 2021, each worth $4 million.
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Click here to access the Public Notices and the Courts sections of the The Daily Business Review in PDF format.
source: https://www.law.com/dailybusinessreview/2021/12/09/amid-155m-ponzi-scheme-fallout-law-firm-fights-to-keep-its-liability-insurance/
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