Former RenaissanceRe chief Stanard fined $100K over Inter-Oc
Saturday, Mar 07,2009, 2:23:36 PM Click:
Copyright 2009 Crain CommunicationsAll Rights Reserved Business Insurance
February 9, 2009
NEWS; Pg. 4
326 words
Former RenaissanceRe chief Stanard fined $100K over Inter-Ocean deal
JUDY GREENWALD
NEW YORK-A judge has imposed a $100,000 civil fine on former RenaissanceRe Holdings Ltd. Chairman and Chief Executive Officer James N. Stanard for his role in orchestrating a two-part sham reinsurance deal with another reinsurer in 2001, according to the U.S. Securities and Exchange Commission.
In 2006, Mr. Stanard and two other former RenaissanceRe officials-former Controller Martin Merritt and former Senior Vp Michael Cash-were charged by the SEC with orchestrating the deal with Inter-Ocean Reinsurance Co. Ltd., a finite-risk reinsurer now in runoff. Messrs. Merritt and Cash, as well as the company itself, earlier settled with the SEC.
The SEC charged that the effect of that transaction was to smooth and defer $26.2 million of Pembroke, Bermuda-based RenaissanceRe's income from 2001 to 2002 and 2003.
In his bench-trial ruling in favor of the SEC, Judge Gerald E. Lynch said: ``Even if Stanard did not decide, in so many words, `I want to do something fraudulent,' the SEC has demonstrated that Stanard was, at the least, highly reckless with respect to the Inter-Ocean transaction.'' The SEC showed ``by a substantial preponderance of the evidence,'' that Mr. Stanard wanted to engage in a transaction that was ``without economic reality,'' Judge Lynch ruled.
The court, in finding that Mr. Stanard violated federal securities laws, issued the fine and permanently enjoined him from violating or aiding or abetting violations of their provisions. But the court denied the SEC's request that Mr. Stanard, who resigned from RenaissanceRe in 2005, be barred from serving as an officer or director of a publicly held company, stating the SEC has not shown that he ``obtained any ill-gotten gains or unjust enrichment as a result of the fraudulent accounting.''
Asked about the possibility of an appeal, Mr. Stanard's attorney, James D. Mathias of DLA Piper US L.L.P. in Baltimore, said, ``At this point, we're still considering all our alternatives.''
February 13, 2009
Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc. All Rights Reserved.
Terms and Conditions Privacy Policy
February 9, 2009
NEWS; Pg. 4
326 words
Former RenaissanceRe chief Stanard fined $100K over Inter-Ocean deal
JUDY GREENWALD
NEW YORK-A judge has imposed a $100,000 civil fine on former RenaissanceRe Holdings Ltd. Chairman and Chief Executive Officer James N. Stanard for his role in orchestrating a two-part sham reinsurance deal with another reinsurer in 2001, according to the U.S. Securities and Exchange Commission.
In 2006, Mr. Stanard and two other former RenaissanceRe officials-former Controller Martin Merritt and former Senior Vp Michael Cash-were charged by the SEC with orchestrating the deal with Inter-Ocean Reinsurance Co. Ltd., a finite-risk reinsurer now in runoff. Messrs. Merritt and Cash, as well as the company itself, earlier settled with the SEC.
The SEC charged that the effect of that transaction was to smooth and defer $26.2 million of Pembroke, Bermuda-based RenaissanceRe's income from 2001 to 2002 and 2003.
In his bench-trial ruling in favor of the SEC, Judge Gerald E. Lynch said: ``Even if Stanard did not decide, in so many words, `I want to do something fraudulent,' the SEC has demonstrated that Stanard was, at the least, highly reckless with respect to the Inter-Ocean transaction.'' The SEC showed ``by a substantial preponderance of the evidence,'' that Mr. Stanard wanted to engage in a transaction that was ``without economic reality,'' Judge Lynch ruled.
The court, in finding that Mr. Stanard violated federal securities laws, issued the fine and permanently enjoined him from violating or aiding or abetting violations of their provisions. But the court denied the SEC's request that Mr. Stanard, who resigned from RenaissanceRe in 2005, be barred from serving as an officer or director of a publicly held company, stating the SEC has not shown that he ``obtained any ill-gotten gains or unjust enrichment as a result of the fraudulent accounting.''
Asked about the possibility of an appeal, Mr. Stanard's attorney, James D. Mathias of DLA Piper US L.L.P. in Baltimore, said, ``At this point, we're still considering all our alternatives.''
February 13, 2009
Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc. All Rights Reserved.
Terms and Conditions Privacy Policy
You may also be interested in:
- CRM Holdings Leads Wednesday's AMBG as Global Insurance Index Declines 0.79%
- AIA Striving for Re-bidding by Chinese Consortium
- Merrill Lynch Oks Funeral Trust Deal: Company To Pay $18 Mil
- Regence Partners with HealthEquity to Offer a Full Suite of Health Care Accounts
- Aetna No Longer the Picture of Health
Featured
National Underwriter Company Launches CFO Dialogues
NEW YORK--(BUSINESS WIRE)-- The National Underwriter Company, the leading
![HSBC Insurance has appointed Bruce Howe, currently deputy regional head of insurance for HSBC Insurance (Asia-Pacific) Holdings Limited [84722], as the chief executive officer and head of insurance](/plus/timthumb.php?src=/uploads/090908/1_112802_1.gif&w=90&h=90&zc=1&q=100 "HSBC Insurance has appointed Bruce Howe, currently deputy regional head of insurance for HSBC Insurance (Asia-Pacific) Holdings Limited [84722], as the chief executive officer and head of insurance")
HSBC Insurance Appoints New Management; Maintaining
HSBC Insurance has appointed Bruce Howe, currently deputy regional head of
Correction: Fitch Affirms Manulife Financial Corp's
CHICAGO--(BUSINESS WIRE)-- (This is an amended version a release issued earlier
Summer Vacation: Travel Insurance Tips From
Today, eHealthInsurance (NASDAQ: EHTH), the leading online source of health
Sector Wrap: Health Insurance in most cases the rise
Copyright: The Associated Press. All rights reserved. May This material may not
Assured Guaranty Ltd annonce l'exercice des options de
HAMILTON, Bermuda--(BUSINESS WIRE)-- Assured Guaranty Ltd. (Assured)
Lincoln: Can't Support Health Care Gov't Option
RUSSELLVILLE - U.S. Sen. Blanche Lincoln told a sometimes jeering crowd on
MOST POPULAR
- Most Read
- Most Discussed
- Most Emailed
- Slain Greenwich Developer's Widow Will not Get Insurance Mon
- Preliminary observations on Humana Medicare Advantage Rates
- USAA Files Trademark Infringement Lawsuit Against Web Site
- AIG's Asian Operations Restructure, May Go Public
- Congress requires that hospitals Justify Tax-Exempt Status
- HIPAA Violations Are Finally Starting To Be Punished
- Former Medical Director Speaks Out About Medicare Fraud
- Knotts denies interference in DHEC: Exex-agent claims to hav
- Head of Hawaii Captive Regulation Joins DTRIC Insurance Co.
- British Government Takes Controlling Stake In Lloyds Banking
Discuss this news
Click Here to see all comments