Article: Fraud case shows need for D&O priority clause; Alleged Ponzi leaders vie with companyfor coverage limits.(NEWS)(directors and officers policy )

Byline: ZACK PHILLIPS

The leaders of an alleged billion-dollar Ponzi scheme and the receiver of the now-bankrupt company are involved in a court battle that observers say illustrates the need for a directors and officers policy provision that has become more prevalent in recent years.

Federal authorities have accused R. Allen Stanford of operating Houston-based Stanford Financial Group Co. as a Ponzi scheme, bilking investors of more than $7 billion through fake certificates of deposit from a subsidiary bank in Antigua. Mr. Stanford and his alleged co-conspirators, who face lawsuits and criminal charges, say they need to tap the company's D&O policy to ...

Related newspaper, magazine, and journal articles:

 
 
Newsweek Harper's Magazine The Washington Post Chicago Tribune Crain's Chicago Business PRNewswire Pediatric News The Nation Advertising Age The Economist (US) A FREE trial gives you access to over 80 million articles! Access over 6,500 publications with a FREE trial!