Barbados insurance company under investigation: Gerova Financial

Brought to you by the same authority who made the Clico collapse possible: Barbados Supervisor of Insurance, Carlos Belgrave

What? Not another scandal involving a Barbados based insurance company? No way!

Although we have few rules for Barbados based insurance companies, we do have a $2,500 voluntary fine for multi-million dollar frauds by insurance companies. Our Supervisor of Insurance, Carlos Belgrave (in cartoon above), is the winner of an international award, so I don’t see what could be the problem.

Prior to being appointed to his regulatory position, (Barbados Supervisor of Insurance) Carlos Belgrave was the General Manager of a local company that manufactures “flour, animal and poultry feeds”

… from OffshoreAlert’s 2006 “Worst Regulator” Award

IMF Says Barbados Insurance Sector Needs “Tighter Regulation” – No Kidding!

What’s the fuss? Just don’t mention names like CLICO, Manulife, British America or a few others and there’s no problem at all.

Except that now the Gerova Financial Corporation is under investigation and most of the board resigned. Ho hum, just another day in the world of offshore finance in Barbados where the rules are a tad different from what some folks might think they are.

It makes one wonder if Barbados ever gets hit with lawsuits for failing to properly regulate the offshore sector. I’ll bet most of those settle pretty damned quickly and quietly. We never hear about them, but I’d wager we Bajans pay up much more than we know…

Statman, Harris & Eyrich, LLC Announces Investigation on Behalf of Investors of Gerova Financial Group

Gerova Financial Group Ltd

CINCINNATI, Feb 28, 2011 (GlobeNewswire)

The law firm of Statman, Harris & Eyrich, LLC, which has significant experience in class actions, announced today that it is investigating Gerova Financial Corp. (“Gerova” or the “Company”) (NYSE:GFC) for potential violations of state and federal law. Gerova operates as a property and casualty insurance and reinsurance company in Barbados, focusing primarily on life and annuity reinsurance.

The firm’s investigation was triggered on January 18, 2011, when the Company announced that it had retained the services of the intelligence company Kroll to investigate a recent report issued by Dalrymple Financial LLC that characterized Gerova as a “shell game” and stated that the Company “has many hallmarks of a classic fraud.” As a result of the Company’s announcement, Gerova stock fell $2.98, or 11%, to close at $24.32 on January 18, 2011.

Later, on February 10, 2011, Gerova announced that four board members and the Company’s president had resigned and that Dennis Pelino would be appointed president and CEO. However, Mr. Pelino withdrew his name from consideration five days later on February 15, 2011. As a result of this news, Gerova shares fell $9.31, or 60%, to close at $6.39 on February 16, 2011.

On February 23, 2011, the New York Stock Exchange halted trading in shares of Gerova stock “pending the Company’s disclosure of additional information relative to its operations, management restructuring and business plans.”

Shareholders who purchased Gerova stock between January 11, 2010 and February 23, 2011 may have a claim against the Company and are encouraged to contact attorney Melinda Nenning at (513) 345-8181, Ext. 3095 or mnenning@statmanharris.com for further information without any obligation or cost to you.

Statman, Harris & Eyrich, LLC has offices in Chicago, Illinois; Cincinnati, Ohio; and Dayton, Ohio.

www.statmanharris.com

This news release was distributed by GlobeNewswire, http://www.globenewswire.com
SOURCE: Statman, Harris & Eyrich, LLC
CONTACT: Statman, Harris & Eyrich, LLC Melinda S. Nenning, Esq. 441 Vine Street, Suite 3700 Cincinnati, Ohio 45202 Phone: (513) 345-8181, Ext. 3095 E-mail: mnenning@statmanharris.com

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5 Comments

Filed under Barbados, Consumer Issues, Corruption, Crime & Law, Offshore Investments

5 responses to “Barbados insurance company under investigation: Gerova Financial

  1. 2pac

    Carlos Belgrave is no longer the supervisor of insurance, do some research and get it right.

  2. Beefcake

    If so, then get the Government to update its website which still lists Mr. Belgrave in that position under Ministry of Finance.

  3. Bill

    Gerova is not even a Barbados insurance company. One of their many investments just happens to be preferred, not-voting shares of a company that is a holding company for a Barbados insurer. Gerova is actually a BERMUDA insurance company. Maybe you should occasionally check some facts before posting on your blog?

  4. Lawyer Up!

    Bill should tell it to the lawyers. They didn’t do their research either then:

    From the lawyer press release “. Gerova operates as a property and casualty insurance and reinsurance company in Barbados, focusing primarily on life and annuity reinsurance.”

  5. Beefcake

    He should also inform the NYSE, as Barbados is also referenced on their information for the company too.