Texas Justice — Lloyd’s Must Pay for Billionaire Criminal’s Defense.

A Carribbean knighthood. Ownership of cricket teams. A fleet of private jets. Texas billionaire Allen Stanford claimed that these things came from his worth ethic and natural abillities. That may be true, if you consider that his worth ethic and natural abilities were sired to criminal undertakings. Stanford and his company are accused of defrauding investors in excess of $8 billion dollars. Criminal indictments and civil lawsuits have resulted. Unfortunately, it appears that Lloyd’s insured Stanford and his company at the relevant times. And now, a Texas judge has ruled that Lloyd’s must pay for the defense of Stanford and his group in the pending SEC and crminal cases. Hopefully, Lloyd’s won’t end up spending billions in legal fees, but tens of millions seems like a reasonable estimate.

If you would like more information about this post, please ctontact Bob Cosgrove

http://www.insurancejournal.com/news/national/2010/01/27/106889.htm

http://pdf.wcmlaw.com/pdf/PendergestDecision.pdf