Pennsylvania Insurance Commissioner Diane Koken has reportedly filed a petition in Commonwealth Court seeking to recover around $3.6 million paid to Robert M. Steinberg, the former Chairman and CEO of the bankrupt Reliance Insurance Co.
According to a report in today’s Wall Street Journal, Robert Steinberg, the brother of Saul Steinberg, who controlled Reliance and its subsidiaries, received the money in the form of severance pay, consulting fees and bonuses shortly before the company went into rehabilitation. He and his brother had both resigned their positions before the filing in May 2001.
The Penn. Insurance Department has already filed several actions seeking the recovery of funds from Saul Steinberg and other officers and Directors of the Pennsylvania-based insurer. The allegations accuse him and others of transferring over $500 million to Reliance Group Holdings, a New York-based Company, through which Steinberg controlled the Reliance Group.
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