Runoff Insurer Amends Cross-Claims, Complaint In Fraud Case Over $320M

Mealey's (September 9, 2019, 12:46 PM EDT) -- NEW YORK — Senior Health Insurance Company of Pennsylvania (SHIP) on Sept. 4 filed amended cross-claims and a third-party complaint, alleging a Ponzi-like scheme consisting of reinsurance companies and related investment management and servicing entities in which fraudulent misrepresentations were made to gain investment control and discretion over $320 million of the runoff insurer’s reserves (In re Platinum-Beechwood litigation, No. 18-6658; Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-6658; Martin Trott, et al. v. Platinum Management (NY) LLC, et al., No. 18-10936, Melanie L. Cyganowski v. Beechwood Re Ltd., et al., Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., and Senior Health Insurance Company of Pennsylvania v. PB Investment Holdings Ltd., et al., No. 18-12018, S.D. N.Y.)....