UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF FLORIDA 

CASE NO: 20-21707-CV-MARTINEZ

RAYMOND JAMES FINANCIAL, INC.,

Plaintiff,

vs.

FEDERAL INSURANCE COMPANY; 

TRAVELERS CASUALTY AND SURETY 

COMPANY OF AMERICA; GREAT 

AMERICAN INSURANCE COMPANY; 

BEAZLEY INSURANCE COMPANY, INC.; 

and ST. PAUL MERCURY INSURANCE 

COMPANY,

Defendants.

PLAINTIFF RAYMOND JAMES FINANCIAL, INC.’S LOCAL RULE 56.1 

STATEMENT OF MATERIAL FACTS IN SUPPORT OF 

MOTIONS FOR PARTIAL SUMMARY JUDGMENT

Plaintiff, Raymond James Financial, Inc. (“Raymond James”), by and through undersigned 

counsel and pursuant to S.D. Fla. L.R. 56.1, submits it Local Rule 56.1 Statement of Material Facts 

in support of Raymond James’ Motions for Partial Summary Judgment against Defendants, 

Federal Insurance Company (“Federal”), Beazley Insurance Company, Inc. (“Beazley”), Travelers 

Casualty and Surety Company of America (“Travelers”), St. Paul Mercury Insurance Company 

(“St. Paul”) and Great American Insurance Company (“GAIC”) (collectively, the “Defendants”), 

and states:

A. The Financial Institution Bonds

1. Raymond James purchased a series of Financial Institution Bonds from the 

Defendants providing a total of $60 million in “single loss” employee fidelity coverage as follows:

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a. Federal Insurance Company Bond No. 70436970, written on a co-surety basis with 

Beazley Insurance Company, Inc., with an effective date of October 1, 2015 through 

October 1, 2016, and a $10 million single loss limit of liability (the “Primary Bond”);

b. Travelers Casualty and Surety Company of America Policy No. 106384318, with an 

effective date of October 1, 2015 through October 1, 2016, and a $10 million single 

loss limit of liability (the “First Excess Bond”);

c. Federal Insurance Company Bond No. 82126526, with an effective date of October 1, 

2015 through October 1, 2016, and a $10 million single loss limit of liability (the 

“Second Excess Bond”);

d. Federal Insurance Company Bond No. 82210871, written on a co-surety basis with 

Great American Insurance Company, with an effective date of October 1, 2015 through 

October 1, 2016, and a $20 million single loss limit of liability (the “Third Excess 

Bond”); and

e. Beazley Insurance Company, Inc. Policy No. V1431F150301, with an effective date of 

October 1, 2015 through October 1, 2016, and a $10 million single loss limit of liability 

(the “Fourth Excess Bond”) (collectively, the “Bonds”).

True and correct copies of the Bonds, including all endorsements, are attached to the First 

Amended Complaint as Composite Exhibit “A.” [ECF No. 39 at ¶ 74 and Ex. A thereto; ECF No. 

46 at ¶ 74; ECF No. 47 at ¶ 74; ECF No. 48 at ¶ 74; ECF No. 49 at ¶ 74; ECF No. 51 at ¶ 74].

2. The Primary Bond grants coverage for loss pursuant to the following fidelity 

insuring agreement:

Loss resulting directly from dishonest or fraudulent acts committed by an 

Employee, acting alone or in collusion with others, with the intent:

(a) To cause the Insured to sustain such loss, or

(b) To obtain financial benefit for the Employee, or another person or entity.”

Notwithstanding the foregoing, however, it is agreed that with regard to Loans and 

Trading this bond covers only loss resulting directly from dishonest or fraudulent 

acts committed by an Employee with the intent to cause the Insured to sustain such 

loss and to obtain financial benefit for the Employee.

[ECF No. 39 at Ex. A, Primary Bond, Endorsement No. 3.].

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3. The term “Employee” is defined in relevant part to include 

“a natural person in the service of the Insured, at any of the Insured’s offices or premises covered 

hereunder whom the Insured compensates directly by salary or commissions and whom the Insured 

has the right to direct and control while performing services for the Insured.” [Id. at Primary Bond, 

Conditions and Limitations, p. 6].

4. Joel Burstein (“Burstein”) qualifies as an “Employee” of Raymond James under the 

Bonds. [ECF No. 39 at ¶ 12; ECF No. 46 at ¶ 12; ECF No. 47 at ¶ 12; ECF No. 48 at ¶ 12; ECF 

No. 49 at ¶ 12; ECF No. 51 at ¶ 12].

5. The Primary Bond is triggered when a loss is “discovered.” The Primary Bond 

provides the following with respect to Discovery:

This bond applies to loss discovered by the Vice President of Corporate Insurance 

and/or Legal Department of the Insured located at the Insured’s principal address 

as stated in Item 1 of the Declarations during the Bond Period. Discovery occurs 

when the Vice President of Corporate Insurance and/or Legal Department of the 

Insured first becomes aware of facts that would cause a reasonable person to assume 

that a loss of a type covered by this bond has been or will be incurred, regardless 

of when the act or acts causing or contributing to such loss occurred, even though 

the exact amount or details of loss may not then be known.

Discovery also occurs when the Vice President of Corporate Insurance and/or Legal 

Department of the Insured receives notice of an actual or potential claim in which 

it is alleged that the Insured is liable to a third party under circumstances which, if 

true, would constitute a loss under this bond.

[ECF No. 39 at Ex. A, Primary Bond, Endorsement No. 23].

B. The Litigations and Court Approved Settlements

6. On April 12, 2016, the U.S. Securities and Exchange Commission (“SEC”) initiated 

litigation against Ariel Quiros (“Quiros”), which resulted in the appointment of Michael Goldberg 

as Receiver for the Jay Peak limited partnerships and related entities (the “SEC Receiver”). [SEC 

v. Quiros, et. al., Case No. 16-CV-21301-GAYLES (S.D. Fla.) at ECF Nos. 1 and 13].

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7. Soon thereafter, numerous lawsuits were filed against Raymond James and 

Burstein, including an action filed by the SEC Receiver on May 20, 2016 [Goldberg v. Raymond 

James Financial, Inc., et al., Case No. 1:16-CV-21831-JAL (S.D. Fla.) at ECF No. 1], and a 

consolidated class action lawsuit filed on May 3, 2016 by individual EB-5 investors who were 

seeking to recover, among other damages, the limited partnership funds that had been 

misappropriated by Burstein and Quiros using accounts at Raymond James. [Daccache, et. al. v. 

Raymond James & Associates, Inc., et al., Case No. 1:16-CV-21575-FAM (S.D. Fla.) at ECF No. 

1].

8. On April 13, 2017, Raymond James entered into a Settlement Agreement and 

Release with the SEC Receiver and class counsel (the “Settlement Agreement”). [SEC v. Quiros, 

et. al., Case No. 16-CV-21301-GAYLES (S.D. Fla.) at ECF No. 315 and Exhibit “A” thereto]. 

The Settlement Agreement provided for the dismissal of all Jay Peak related civil litigation against 

Raymond James and a bar of future litigation (other than actions brought directly by government 

entities) in exchange for payment by Raymond James totaling $150,000,000. [Id.].

9. The Settlement Agreement, including the Bar Order, was approved by United States 

District Court Judge Gayles on June 30, 2017 [SEC v. Quiros, et. al., Case No. 1:16-cv-21301-

DPG (S.D. Fla.) at ECF No. 353] and became final and non-appealable on August 30, 2017. See 

Fed. R. App. 4(a)(1)(B).

C. Raymond James’ Claim Under the Bonds and this Lawsuit

10. On or about May 4, 2016, Raymond James’ Legal Department received notice that 

the Daccache lawsuit had been filed against Raymond James and Burstein. See [Raymond James’ 

Notice of Serving Amended Responses and Objections to Interrogatory Nos. 2, 3, 4, 5, 6, 7, 8 and 

11 of Defendant Beazley Insurance Company, Inc.’s First Set of Interrogatories at No. 5, a copy 

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of which is attached hereto as Exhibit “A”]. At that time, Raymond James received notice of an 

actual claim in which it was alleged that Raymond James was liable to a third party under 

circumstances which, if true, would constitute a loss under the Bonds. [Id.].

11. Raymond James then provided notice to the Defendants of a claim under the Bonds 

on May 16, 2016. [Transcript from the Rule 30(b)(6) Deposition of Federal Insurance Company 

Representative Ken West taken on June 23, 2021 (“West Dep.”), at pp. 113:22-114:1, attached 

hereto as Exhibit “B”; Transcript from the Deposition of Tracey Archbold/Corporate 

Representative of Great American Insurance Company taken on June 30, 2021 (“Archbold Dep.”) 

at p. 70:9-19, attached hereto as Exhibit “C”; Transcript from the Deposition of Antonio Anthony 

Trotta III, as Rule 30(b)(6) Corporate Representative of Beazley Insurance Company, Inc. taken 

on July 21, 2021 (“Trotta Dep.”) at pp. 68:22-69:4, attached hereto as Exhibit “D”]. 

12. Raymond James, as requested by the Defendants and pursuant to agreed-upon 

extensions, submitted a narrative sworn proof of loss on February 27, 2018. [Ex. B, West Dep. at 

pp. 127:5-15, 516:23-157:1; Ex. C, Archbold Dep. at 128:13-16; Ex. D, Trotta Dep. at 139:2-5].

13. On April 20, 2020, counsel for Defendant Federal Insurance Company, as the 

primary insurer in a follow form tower, sent a letter to Raymond James denying coverage under 

the Bonds. [Ex. B, West Dep. at p. 172:14-18]. Similar denial of coverage letters were sent by 

Travelers and St. Paul on April 22, 2020 [Transcript from the Deposition of Corporate 

Representative of Travelers Casualty & Surety Company of America/St. Paul Mercury Insurance 

Company, Matthew Kalin taken on July 8, 2021 (“Kalin Dep.”) at 85:14-88, attached hereto as 

Exhibit “E”], by GAIC on April 29, 2020 [Ex. C, Archbold Dep. at p. 88:9-15], and by Beazley 

on June 1, 2020 [Ex. D, Trotta Dep. at p. 108:3-25].

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14. Raymond James then filed this action against the Defendants on April 23, 2020. 

[ECF No. 1]. Raymond James filed a First Amended Complaint for Damages on July 8, 2020. 

[ECF No. 39]. In the lawsuit, Raymond James asserts claims for breach of contract and declaratory 

judgment [Id.], and seeks to recover the $60 million in “single loss” insurance coverage that 

Raymond James purchased from the Defendants under the Bonds at issue, together with prejudgment and post-judgment interest, costs and attorneys’ fees pursuant to Fla. Stat. § 627.428 

and/or other applicable law. [Id.; see also Ex. A at No. 3].

Dated: July 30, 2021. Respectfully submitted,

/s/ Jason S. Mazer

Jason S. Mazer, Esq. 

Florida Bar No. 0149871 

Joshua R. Alhalel, Esq. 

Florida Bar No. 0016320

CIMO MAZER MARK PLLC

100 Southeast Second Street, Suite 3650

Miami, Florida 33131

Telephone: (305) 374-6481; Fax: (305) 374-6488

jmazer@cmmlawgroup.com

jalhalel@cmmlawgroup.com

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CERTIFICATE OF SERVICE

I hereby certify that on July 30, 2021, I electronically filed this Statement of Facts with the 

Clerk of Court using CM/ECF. I also certify that the foregoing document is being served this day 

on parties listed in the below Service List via transmission of Notices of Electronic Filing 

generated by CM/ECF or in some other manner.

/s/ Jason S. Mazer

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SERVICE LIST

Kristina L. Marsh, Esq. 

Florida Bar No. 0311080

GORDON REES SCULLY MANSUKHANI

601 S. Harbor Island Blvd., Suite 109

Tampa, FL 33602

Telephone (Main): 813-444-9700

Telephone (Direct) 813-523-4937

Facsimile: 813-377-3505

kmarsh@grsm.com

and

Scott L. Schmookler, Esq.

Sarah Riedl Clark, Esq.

GORDON REES SCULLY MANSUKHANI

One North Franklin, Suite 800

Chicago, IL 60606

Telephone: 312-980-6779

sschmookler@grsm.com

srclark@grsm.com

Counsel for Federal Insurance Company

James M. Kaplan, Esq. 

Florida Bar No. 921040

KAPLAN ZEENA LLP

2 South Biscayne Boulevard, Suite 3050

Miami, Florida 33131

Telephone: (305) 530-0800

Facsimile: (305) 530-0801

James.kaplan@kaplanzeena.com

Elizabeth.salom@kaplanzeena.com

service@kaplanzeena.com

and

Michael Keeley, Esq.

John R. Riddle, Esq.

C. Adam Brinkley

Clark Hill Strasburger

901 Main Street, Suite 6000

Dallas, Texas 75202-3794

Telelphone: (214) 651-4718

Facsimile: (214) 659-4121

mkeeley@clarkhill.com

jriddle@clarkhill.com

abrinkley@clarkhill.com

Counsel for Beazley Insurance Company, Inc.

E.A. “Seth” Mills, Jr., Esq. 

Florida Bar No. 339652 

Ryan J. Weeks, Esq.

Florida Bar No. 57897

MILLS PASKERT DIVERS

100 N. Tampa Street, Suite 3700

Telephone: (813) 229-3500

Facsimile: (813) 229-3502

smills@mpdlegal.com

rweeks@mpdlegal.com

csoltis@mpdlegal.com

Counsel for Travelers Casualty and Surety 

Company of America

Dustin C. Blumenthal

Florida Bar No. 0149871 

Goldberg Segalla

222 Lakeview Avenue, Suite 800

West Palm Beach, FL 33401

Telephone: (561) 618-4485

Facsimile: (561) 618-4549

dblumenthal@goldbergsegalla.com

lparker@goldbergsegalla.com

and

Stephen N. Dratch, Esq.

Franzblau Dratch, P.C.

354 Eisenhower Parkway

Livingston, New Jersey 07039

Telephone: (973) 992-3700

Counsel for Great American Insurance Company

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