According to reports, insurance broker hit with federal lawsuit, and the regulator unveiled news of the lawsuit earlier this week in a press release on the Department of Financial Regular website.
Department Financial Regulation (DFR), Vermont has filed a federal lawsuit against Global Hawk Risk Retention Group, the former president Jasbir Thandi and several company’s professional advisors, over allegations.
It was revealed that the Global Hawk falsified bank documents to hide its struggling financial condition from the Department of Financial Regulation.
The complaint added that, the scheme allowed the defendants to continue operating the insolvent company.
This so called company, Global Hawk is a Vermont based captive insurance providing coverage to commercial trucking companies outside of the state.
Vermont insurance commissioner Michael Pieciak said, “Our department won’t allow financial impropriety of any kind.
However, this matter showed the rigorous oversight the Department provides to those who engage in our financial marketplaces.
And the major issues that caused all this is Department’s demand for capital contributions that ultimately led to this filing.
While this action in turn caused Global Hawk to fall into bankruptcy, as the complaint also alleges that Global Risk president Thandi hatched a scheme to obtain a line of credit by pledging the assets of his company as collateral, and the line of credit was used for his own personal benefit.
Then it was further alleged that the lawsuit Thandi conspired with his financial advisor to falsify financial documents that were filed with Vermont’s DFR.