Ohio’s Director of Insurance Lee Covington, acting in his capacity as liquidator of property and casualty insurer of Credit General Insurance Company, sued the previous owner and officers of Credit General, alleging that a civil conspiracy took place and looking to recover diverted company funds in excess of $30 million.
Filed in Franklin County Common Pleas Court, the suit names prior owner Robert Lucia of West Palm Beach, Fla., former treasurer and vice president Gregory A. Fazekash of Hudson, and former treasurer and vice president John Boyko of Broadview Heights as defendants.
The nine-count complaint alleges the defendants: breached their fiduciary responsibilities to Credit General; were negligent in the performance of their responsibilities to the company; were unproperly enriched by company funds; fraudulently converted, diverted, and transferred company funds for personal use; and conspired to maliciously injure Credit General, its policyholders and creditors through their actions.
In the suit, the defendants are asked to return the diverted funds, along with punitive damages, costs, interest, and attorney fees be covered by the defendants. Funds received through the civil action will be put forth to fulfill Credit General’s financial responsibilities to its policyholders, creditors, and shareholders.
Following an exam of the company in late 1999, the department began an investigation of the company in early 2000. After analyzing the gathered information, the Department placed Credit General placed under supervision in June of 2000.
The Department required that Credit General cease writing new business in September 2000.
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