Two former Clearview Risk Holdings LLC executives duped a Madison Dearborn Partners LLC affiliate into a $105 million acquisition through years of accounting fraud, according to a lawsuit filed Friday.
An Amynta Group unit sued Clearview ex-CEO Parker Rush and former chief financial officer John Garner, saying they covered up the insurance company’s struggles through a “classic Ponzi scheme” that involved downplaying its liabilities, carrying inadequate reinsurance, and raiding premiums held in trust to pay future claims.
Although they “planned and executed an extensive, multi-faceted fraud,” Clearview’s losses ultimately “outpaced Garner’s and Rush’s ability to cover them using the following ...
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