British American Insurance fat cats doing fine as policy holders take beating

Cocky BA, CL Financial and CLICO executives have no worries

The numbers have been crunched and the result is what everyone already knew: ordinary BA policy holders will lose. Barbados Today neatly lays it out in a single sentence…

“Thousands of Barbadians who own policies with British American Insurance Company (Barbados) Limited will have to walk away from the insurer without all of what they are owed.” (Barbados Today article here)

A second Barbados Today story about the sale of the new BA office building tells us that although the building was carried on BA’s books with a value of $34 million dollars, it was in fact worth only about half of that.

This outrageous over-valuation of assets is so typical of the entire CL Financial / Clico / British American scandal. Policy holders should remember that company executives made the decisions to over-value assets, and that these decisions were taken for a purpose: to deceive the public and policy holders who believed that the auditors and government regulators were protecting them.

What the public and policy holders didn’t know though, was that the regulators and auditors were more like partners in crime with the CL Financial crooks than unwitting dupes.

Over valuations were only one part of the fraud, for there were other crimes committed too. We published an exclusive story in June, 2009 that showed how CL Financial Group – British American insiders took bribes and kickbacks to have the company purchase land for more than market value…

Court documents sent to Barbados Free Press reveal that a CL Financial Group company involved in a US$300 million dollar Florida land deal – paid more than market value for the land. This happened because the seller of the land provided “incentives” (read “secret commissions”, “bribes” or “gifts”) to company insiders in return for having CL Financial Group purchase the land for more than it was worth.

from BFP’s story CL Financial Group Insiders Took Bribes To Have Company Purchase Land For More Than Market Value!

Partners in Crime then. Partners in the cover-up now.

Government regulators, company auditors & British American Insurance executives – can you really tell them apart?

For years Bajans faithfully made those investments, premium payments and pension contributions. We trusted our Government’s oversight of the Insurance industry. We didn’t ask if our pension funds were segregated and protected: we knew they were because that was the law and we had auditors and government to keep an eye on the insurance companies.

We were lied to: by British American, by our government and by the auditors.

We trusted our government leaders – who took political contributions from CL Financial companies and then looked the other way when those same companies violated the rules, gambled with our money and stole what they didn’t lose.

Then when that house of cards, that Ponzi scheme, collapsed – our DLP Government protected CLICO CEO Leroy Parris and all his friends. And lest the BLP Opposition gloat, we remind Owen Arthur that he was in thick as thieves too.

Once again the ordinary folks who trusted these fine leaders get the backhand, while the crooks continue to live the good life with no worries.

No one will go to jail for what happened, no matter the evidence. You can take that to the bank… which is exactly what Leroy Parris and his friends are doing.

14 Comments

Filed under Barbados, Business & Banking, Consumer Issues, Corruption, Crime & Law, Offshore Investments, Political Corruption, Politics & Corruption

14 responses to “British American Insurance fat cats doing fine as policy holders take beating

  1. TWWIFOS

    What’s even more amazing is that BA continues to collect payments on health insurance policy’s, while NOT PAYING OUT ANYTHING ON CLAIMS! This has been going on for more then a year.

    They are like a bunch of bookies that don’t pay when they lose. Shameful.

  2. Burned

    If governemnt continues to support these criminals, then this issue alone will lose them the next election. Only firm, positive action to move against them, to prosecute them where necessary, and chase down their personal assets will suffice to save this government. Better late than never. Policyholders should not give up and should not be afraid to come forward – it’s THEIR money that is at stake here. Join the fight – join BIPA (Barbados Investors and Policyholders Alliance). http://www.the bipa.net.

  3. millertheanunnaki

    @ TWWIFOS: November 10, 2011 at 7:27 am
    “They are like a bunch of bookies that don’t pay when they lose. Shameful.”
    You seem not to realise that the only winners in this con game will be the boys in suits pocketing the huge professional fees and administration charges. Just watch the spin of the roulette wheel and see where the ball consistently falls at each rigged turn.

  4. IF the value of property on the balance sheets of BAICO and CLICO was inflated and, therefore, false, cannot those culpable be sued?

  5. “Let every man make known what sort of government commands his respect, and that shall be one step towards making it so” – Henry David Thoreau (who was also incarcerated in the 1840s for failure to pay taxes on account of his disapproval of the U.S. war against Mexico. Thoreau was visited by his friend, Ralph Emerson – the poet – who asked what Thoreau was doing “in there”, to which Thoreau replied “what are you doing out there?”).

    APT – please take note!!

    Therefore, ALL CLICO and BAICO policyholders please join The BIPA without further delay. THE ONLY WAY you are going to succeed is collectively. Singularly you are just not powerful enough. Remember, UNITED WE STAND – DIVIDED WE FALL! Your commitment to The BIPA and to bringing ALL persons and bodies culpable in the CLICO and BAICO ***k-up is essential if you want what is RIGHTFULLY yours.

    The vast amount of “bail out” money poured into insurance companies like AIG was not only to protect the US economy, but was also compensation for lack of regulation by the US government. The situation in Barbados is basically the same – the main difference is scale.

    Some say “not a cent” of taxpayers’ money to repay CLICO and BAICO policyholders! People, please remember that EVERY CENT the government has is taxpayers’ money – including taxes paid by CLICO and BAICO policyholders! When government breaks statutory law, it is responsible to make reparation to injured parties. The Barbados government must do right by the electorate and compensate them for government’s negligent lack of statutory regulatory control that was apparently forefront in the demise of CLICO and BAICO Barbados.

  6. Newbie

    I have only one statement to make. After sorting the wheat from the chaff one thing is obvious, SOMEONE SOMEWHERE IS RESPONSIBLE FOR THIS, SO FOR JUSTICE TO BE SEEN TO HAVE BEEN DONE, SOME ONE HAS TO PAY.
    Otherwise we are all being fed a bucket of PIGSWILL about the law in OUR COUNTRY.

  7. Maybe those that are responsible for this mess are the Barbadian public.
    If the Barbadians insist on sitting on their ass and refuse to step up; take a look at what others are doing around the world to empower themselves, maybe soon they will loose more than their assets.
    Only two people showed up to demonstrate against the high electricity bills of late.

  8. @ Whitehill

    I agree – too many Barbadians suffer from apathy and fear of IMAGINED victimisation. What those people need to do is “feel the fear and do it anyway”! Assert THEIR POWER in order to bring about change. Develop the strength, by ACTION, to fight for what IS RIGHTFULLY THEIRS. Many CLICO and BAICO policyholders appear to be quite willing to sit back while others take up the fight. Of course, those who sit back will want to fly on the coattails of those with the spirit to “move”. Those with the who will do whatever is necessary to prevail. I think this is pitiful indeed! COME ON CLICO AND BAICO POLICYHOLDERS – YOU CAN DO IT!!! Join The BIPA NOW – put your POWER where your money is!!

  9. 89

    I am a policy holder and i need my monies badly so that I can pay my daughter colledge huge bills, Please I beg I well in need of my monies

  10. Andy

    If Mr. Parris and all his ‘cronies’ were to be tried by the law courts as in the US they would all be rotting in jail as we speak.

  11. policy holder

    whats the latest on British American? will we ever get paid some kind of settlement?
    BFP can you start a new investigation in to this?

  12. Mark Fenty

    Mr. Whitehill, are you asking us to believe that those policy -holders should have foreseen the consequences of British American Insurance Company’s actions. Have you given any thought to the fact that the policy -holders, had no justifiable basis for suspecting that the British American Insurance Company wouldn’t have lived up to they obligations. Finally, I must ask this question though, to whom does the blame belong? Certainly, not the policy -holders, because they have acted in good faith.

  13. Mark Fenty

    Mr. Whitehill, I’m probably your harshest critic here,but don’t take it personally,it’s just a matter of social discourse. Nevertheless, before you start to excoriate the policyholders for they lack of efficacy. Consider whether they have at they disposal, the appropriate information to begin the process of recovering they money.