Israeli insurance startup Vesttoo Ltd. filed bankruptcy after an Aon Plc subsidiary accused the company of presenting fraudulent letters of credit and a federal judge froze its assets.
Vesttoo and affiliates filed Chapter 11 Monday in Delaware, days after Judge Paul Engelmayer granted Aon subsidiary White Rock Insurance (SAC) Ltd. a temporary restraining order freezing most of the Israeli startup’s assets, according to court documents.
White Rock accused Vesttoo of pocketing millions of dollars in ill-gotten insurance premiums. The Aon subsidiary said it turned to federal court because it was worried the startup would move funds out of the business, ...
