Reinsurance Execs Can Arbitrate $50M RICO Suit, Judge Says

“A New York federal judge Tuesday sent a $50 million Racketeer Influenced and Corrupt Organizations Act case against three reinsurance executives to arbitration, saying the arbitration clause in the reinsurance agreement applies to them as well as their company.

U.S. District Court Judge Edgardo Ramos said the claims against Beechwood Re executives Moshe M. Feuer, Scott Taylor and David Levy are based on the allegation they were acting as agents of Beechwood, and therefore the arbitration clauses in the agreements with Beechwood apply to them as well.

Beechwood clients Bankers Conseco Life Insurance Co. and Washington National Insurance Co. claimed Feuer, Taylor and Levy founded reinsurer Beechwood Re with a secret $100 million investment from Platinum Partners co-founder Mark Nordlicht and in return invested the assets of its clients, including the insurers, with Platinum funds and related entities.

Bankers and Washington National are represented by Joseph L. Buckley and Richard H. Epstein of Sills Cummis & Gross PC and Adam J. Kaiser, John M. Aerni and Daniella P. Main of Alston & Bird LLP.”