CFO Atwater Obtains $76 million Judgment Against Owner of Insolvent Insurer
On April 13, 2011, a judgment for more than $76 million was handed down by the Complex Litigation Division of the Miami-Dade Circuit Court against the former owners of Aries Insurance Company. The judgment announced by CFO Atwater, follows an extensive investigation by the Department of Financial Services (Department) that determined that Marcos Fraynd and his children, diverted company funds for personal use. In 2006, the Department sued the former owners and directors of Aries for diverting policyholder premium money and making illegal distributions of Aries’ assets for their personal benefit.
Aries Insurance Company was ordered into receivership in 2002 and to date the Florida Insurance Guaranty Association and the Florida Workers’ Compensation Insurance Guaranty Association have paid more than $165 million in claims.
CFO Atwater promised to take more of such actions whenever it was appropriate. “My Department will aggressively pursue anyone who schemes to line their own pockets through fraud and deception.”