Source: http://www.badfaithinsurance.org/reference/General/1615a.htm
Timestamp: 2019-04-25 15:54:46+00:00

Document:
FBIC's five year investigation (with help from a Whistleblower) Exposes And Confirms Berkshire Hathaway Insurance Companies Group (BHICG) For Illegal Widespread Fraud, Corruption And Bad Faith Insurance Practices That Go All The Way To Include The Topmost Berkshire Executives Exec. V.P. Ajit Jain, General Counsel & Corp. Secretary of Berkshire Hathaway Inc. Forrest Krutter And Yes, Chairman & CEO Warren Buffett. This is an exclusive ongoing investigation which FBIC started in 2005 and now published for the first time FBIC exposes and confirms the allegations as fact that were made and submitted to FBIC by a Whistleblower in 2005 and reveals Berkshire Hathaway Insurance Companies Group committing illegal bad faith insurance practices, complicated and convoluted systemically-driven schemes of frauds as a business-usual standard course of practices to this very day to intentionally avoid payment of claims while fraudulently maximizing cash flows and float ... but the illegal practices don't stop there, they just start there and per the Whistleblower the substantial number of illegal practices referenced herein are "just the tip of the iceberg" as there is widespread and an endless number more that accordingly are not covered herein ... read on and understand that the extent of the fraudulent practices behind the scenes are endless.
Some of the other illegal schemes and conspiracies to commit fraud covered herein include but are not limited to, for example, the looting and accelerating of depleting the treasuries of non-Berkshire-Hathaway owned companies leaving these companies that Berkshire Hathaway does/did business with under their control, deficient and lacking adequate funds to satisfy and pay policyholders claims ... and more. All-in-all the frauds could involve and total an estimated 50 billion dollars or more of illegally siphoned off funds, claims not paid, and/or payments delayed over the past 10 years.
FBIC announces the results of this continuing five (5) years investigation originating in 2005 from 'allegations' received and provided 'exclusively' to FBIC by a Whistleblower who provided extensive evidence and allegations exposing 'widespread bad faith insurance practices and extensive systemic frauds' committed and conducted on a daily business-as-usual basis by Berkshire Hathaway Insurance Companies Group specifically their 'Reinsurance' Company "National Indemnity Company" (NICO) perpetrated against both small and large-sized Companies which were left with no other choice but to bring lawsuits potentially involving thousands of people illegally denied, delayed and deprived on their insurance benefits and payment of their insurance claims.
Regarding the "Widespread Systemic Use Of Bad Faith Insurance Claims Practices And Fraudulent Schemes", they all had one thing in common, to put-off and/or do whatever necessary, legally or illegally, not to pay claims ultimately benefiting parent corporation Berkshire, their own company and themselves personally. One such example of the many alleged examples of outrageous fraudulent schemes and activities committed included a wide and extremely diverse range of illegal acts which included looting the treasury(ies) of (non-Berkshire-owned insurance companies i.e. Kemper Companies [which includes American Motorists Insurance Company (AMICO)] div. Lumbermens Insurance Group in liquidation (a/k/a 'runoff') which had 'cap cover' reinsurance policies issued by Berkshire Hathaway reinsurance company "National Indemnity Company".
In this case much if not most of Kemper Companies, which includes Parent Lumbermens Group and active entity American Motorists Insurance Company (AMICO), a non-owned Berkshire insurance company group originally with an estimated total upwards of some $7 billion in entirety in it's treasuries ultimately had a significant portion of upwards of some $6.7 billion paid out and/or transferred by/through Berkshire Companies entities (i.e. National Fire & Marine, NICO, NICO Mid-America, Columbia, Randall America the same "Randall" entity owned by Ken Randall America associated with the ownership of Randall & Quilter) and before allegedly selling it off to an entity of UK-based Randall & Quilter, leaving it with inadequate funds left to pay policyholders outstanding unpaid claims (see Santa Fe Braun court case details referenced herein).
utilizing the heavy usage of questionable finite and cap-cover reinsurance agreements written by Berkshire Hathaway with the other insurance companies they manage (i.e. Seaton, Stonewall, Transport Insurance Companies, etc. that in reality were loans.
... all of the above effecting insured and reinsured companies with finite and/or cap cover reinsurance policies issued by "National Indemnity Insurance Companies". National Indemnity Company is a little known power-house Berkshire-owned reinsurance company based in Berkshire headquartered Omaha Nebraska where it can be closely controlled and monitored and where higher level money decisions can be and are made regularly related to these activities, by/between Berkshire's top-most corporate executives Ajit Jain, Forrest Krutter, whether to pay or not pay their reinsurance claims and thereby controlling and through aforementioned means maximizing the available $$$ float. Of Note: Warren Buffett admits to speaking with Ajit Jain at Stamford, CT-based General Reinsurance routinely committing illicit whatever-it-takes systemic schemes to avoid payment of insurance-reinsurance claims and related expenses most all attributed to the illegal maneuvering and illicit management of Berkshire Hathaway's available $$$ float ... all Berkshire Hathaway illicit acts represented by the Whistleblower as being just "the very tip of the iceberg".
These allegations against Berkshire Hathaway (BH), prompting and resulting in a five (5) year investigation by FBIC, were leaked to FBIC by a Whistleblower starting in May 2005. The allegations in 2005 also involved a number of other non-Berkshire Hathaway owned conspiratorial companies working in concert to include Cavell U.S. (more on Cavell and Randall & Quilter from the Whistleblower later). FBIC has spent the greater part of the five years investigation researching and trying to disprove the veracity of the allegations and was unable to find fault or invalidate the Whistleblower's BH allegations. FBIC pulled all of the dockets (Courts Register of Actions) of all the listed Whistleblower leaked cases, spoke to some of the court cases plaintiff attorneys, read key parties court testimonies and court complaints, etc. and to the best of FBIC's knowledge found the information to be true.
Thomas M. Ryan, Vice President National Liability and Fire Insurance Company, Vice President National Indemnity Company (NICO), President Resolute Management, Inc. New England Division, Vice President National Indemnity Company (NICO) of Mid-America, Vice President National Fire and Marine Insurance Company and Vice President of The Berkshire Hathaway Insurance Companies Group and others as previously referenced; (Whistleblower: Berkshire Hathaway Insurance Companies Group intentionally and repeatedly did not pay and/or put-off paying claims to increase Berkshire Hathaway's cash flow and the float which decisions not to pay in many cases went all the way to the top at Berkshire Hathaway.
You can read the admissions of illegal bad faith insurance practices committed in current confirming court allegations and testimonies as indicated in the ongoing 2009 litigation in the CELANESE INTERNATIONAL CORPORATION v. ONE BEACON INSURANCE COMPANY (formerly known as Commercial Union Insurance Company), ETALS., Case #SUCV2006-1625-BLS2 from the COMMONWEALTH OF MASSACHUSETTS SUFFOLK, SS Superior Court in confirming that the FBIC Whistleblower allegations of bad faith claims handling and fraudulent wrongdoings by the involved parties in 2005 and prior (going back to 1999), are in fact alive and well, ongoing and growing in this very 2009-2010 day.
Pam Hoelsken, Chief Operating Officer of Cavell America a/k/a Cavell USA (owned by Randall & Quilter headquartered in the U.K.), whose owners Ken E. Randall and Alan Kevin Quilter are also implicated as they are alleged to have direct knowledge if not involvement of the illicit activities. (As of 2005 - 2010), Cavell America aka Cavell USA (owned by UK-based Randall & Quilter aka R&Q entities) are alleged to either manage and/or have the same illegal questionable business claims management relationships, involved in many of the same and similar lawsuits and allegations against it include: Seaton Insurance, Stonewall Insurance, Transport Insurance, OneBeacon Insurance, Kemper Insurance or aka American Motorists Insurance Company (AMICO) div. Lumbermens Group, GEICO Insurance, Republic Insurance, Ken Randall America, ACE Brandywine (previously sold in 2006 to R&Q under major opposition and protest by other major U.S. insurers for the reason that R&Q was not adequately financed to handle the much larger run-off of ACE Brandywine), Equitas (UK) aka Equitas Management, Resolute Management, and other entities all have or are alleged to use or have such cap covers-finite reinsurance policies that (per the Whistleblower) are in reality "loans", and related business relationships with Berkshire Hathaway Insurance-Reinsurance Companies and/or are owned by Berkshire Hathaway (i.e. Resolute Management, formed o/a 2006 to expand and grow these same related illicit operations beyond the U.S. and UK to other countries) or may be/are under Berkshire Hathaway's control. Randall & Quilter entities and related other entities are defendants in several lawsuits alleging the same related business practices intended to defraud policyholders).
FYI, reinsurance is simply insurance for your insurance company in the event you make a claim or bring a lawsuit to be able to collect on a claim denied. It is important to note and for policyholders to know that it is primarily reinsurers that control and pay much if not most of all policyholders and third parties insurance claims (and not insurance companies that policyholders buy insurance from, send premiums to and have insurance policies with).
Berkshire Hathaway Inc. has grown to be among the largest, if not the largest, reinsurers (i.e. General Reinsurance Company, National Indemnity Insurance Co., etc.), run-off and third party claims management administrators with significant operations (e.g. Resolute Management, etc.) in the United States and working in concert with other non-Berkshire-owned companies outside the U.S.. In addition, Berkshire Hathaway owns a multitude of insurance and reinsurance companies in the U.S. Berkshire Hathaway owns upwards of 40-50 insurance, reinsurance, runoff and third party claims administrator companies, many working 'very closely' together. Berkshire Hathaway is among the U.S. largest group insurers and insurance industry operators.
We realize that there is some redundancy in our expose' which is not intentional. In most cases it is because there are numerous cases where the same illegal activities are involved in many and such cases where the defendants and parties are repeated and the same defendants and parties are named in many cases and with the same allegations. As evident by the Whistleblower allegations which will be published and announced here on this website and which will follow, FBIC's ongoing investigation and expose includes a significant number of legal cases, legal testimony and involves many companies with questionable reinsurance and cap-covers reinsurance illegal activities which comprises a substantial amount (truck-loads) of information too much to publish here but that which we will expose and condense to take as little time as possible to put up here on the website and make as easily readable as possible. Yet with all FBIC has learned about Berkshire Hathaway's alleged illegal bad faith insurance, reinsurance, runoff and third party claims administrator operations and alleged illicit fraudulent schemes and activities, we know they "represent just the very tip of the iceberg".
Allegations made by the whistleblower to FBIC starting five years ago involve billions of dollars of illegal and ill-gotten bad faith insurance gains to Berkshire Hathaway and other co-conspirators at the expense of America's policyholders and claimants ... and even more importantly as a result the subsequent losses to "hundreds of thousands" moreso "millions" of Americans and victims, and the loss of their well-being, the loss of wealth and the annual loss of millions of U.S. jobs annually, FBIC submits this proposal for jobs creation and solution to Americans loss of wealth retention due to widespread bad faith insurance practices and claimants being denied and not being paid on their claims properly if at all ... and asks The President to consider and help.
The FBIC-Whistleblower story highlights in detail and summarizes when possible the real behind the scenes goings-on and illicit operations supported and confirmed with numerous court cases, documents and testimonies, contributing to further expose just how widespread the frauds and illegal bad faith insurance activities are within Berkshire Hathaway operations and the U.S. insurance and limitedly regulated but mostly unregulated reinsurance, third party claims administrators and runoff segments of the insurance industry today.
FBIC, which operates mainly on donations from the Public made on this website, with limited means knew it did not have the adequate resources to have undertaken such a daunting and enormous investigative task. Even though it has spent the better part of five years investigating the veracity of the Whistleblower's allegations being limited without having the benefit of subpoena power. FBIC's investigations are presently continuing and ongoing. FBIC has learned enough on its own investigations that it agrees with the Whistleblower that the many court cases and testimonies in FBIC's possession represent just "the very tip of the iceberg".
Note: FBIC are not lawyers ... FBIC is a non-profit consumer insurance advocacy and we let the American People be the judge and make their own decisions on related insurance issues esp. since we have learned over the years and gotten to the point not to expect the questionably corrupt as well as grossly understaffed state insurance regulatory agencies to do any meaningful investigations and the states' attorneys offices are understaffed to handle such investigations on their own ... in this case the federal investigative authorities are needed and essential to investigate the widespread bad faith insurance practices, fraud and corruption that exists 'herein' and is so pervasive and prevalent in our country today and for the past several decades. To the best of FBIC's knowledge and due-diligence, and limited without having subpoena power in its investigations toolbox, and with FBIC's ongoing investigations, FBIC has confirmed as much of the information as was possible and of note was unable to disprove any of the Whistleblower's allegations.
The Whistleblower's allegations will start and be cited here shortly followed by supporting court cases of illegal bad faith insurance practices and fraudulent activities. (Note: There will be frequent updates, many more exposed court cases and testimonies to follow in the weeks and months ahead).
(Attention Plaintiff Insurance Attorneys: FBIC's investigation into Berkshire Hathaway-National Indemnity-Cavell-Resolute Management bad faith insurance and fraudulent practices continues and is ongoing as there are many more cases being fought in court rooms. The investigation was initiated as a result of information received by FBIC from a Whistleblower. FBIC is a consumer insurance advocacy and not lawyers. FBIC requests whistleblowers and/or plaintiff lawyers to please send FBIC more related court cases, court case complaints, supporting documentation and court testimonies by clicking: FbicLawyerInquiry@badfaithinsurance.org, or Whistleblowers, ... (anonymously if you wish so as not to get involved or be referenced ... that is unless you and/or your law firm wish to be referenced and cited for your lawyerly contribution to the U.S. and help in this significant investigative expose 'mentioned' with your published materials which we are glad to do with your permission).
Most Americans don't believe for a minute and suspect that the 2008-2009 felony convictions of five (5) top and senior level Berkshire Hathaway owned General Reinsurance executives which includes Ron Ferguson, Christopher Garand, Elizabeth Monrad, Robert Graham, John Houldsworth, and one (1) AIG executive Christian Milton could not possibly represent a one-off solo occurrence of fraudulent activity by Berkshire Hathaway and General Re ... rather Berkshire Hathaway Insurance-Reinsurance Companies Group appear to be consumed with systemic fraud practices perpetrated by bad faith insurance, reinsurance and related by Berkshire Hathaway Insurance Companies (and AIG). In addition, in spite of committing a $500 million fraud, these convicted felons not only received extremely light beyond the court sentencing guidelines, but they are not in prison for various reasons ... which this decade pretty much follows the usual court leniency and non-prison legal chicanery which occurs when white-collared top level insurance executives are found guilty of committing fraudulent crimes ... which should be a real embarrassment by the U.S. to the rest of the world. There's more, much more ... and just the tip of the iceberg.
Berkshire Hathaway has shown more and more to be overwhelmingly consumed with pervasive and widespread fraudulent activities as Americans grow to learn, now with the FBIC-Whistleblower expose', that the GenRe-AIG case is not just a one-off but is part of a pattern of a larger number of many other similar and various other illegal and criminal insurance-reinsurance based activities as supported by the further fraudulent activities such as in the 2009 former Ex-Chief of GenRe British Unit, Milan Vukelic, whose illegal activities put him in prison in the U.S. for 18 months in 2000, then got him fired at GenRe in the U.S. in 2005 and now in 2009 got him banned from ever holding a position of trust in the financial-services industry in Britain and Australia after he was found to have helped companies illegally conceal losses. The pervasive frauds and widespread bad faith insurance companies practices destroys hundreds of thousands companies and individuals victims and the loss of ultimately upwards of millions of jobs annually throughout all industries ... lost forever and never to be regained to the sole benefit of the bad faith insurance companies and their executives ... just the tip of the iceberg.
U.S. insurance body in hunt for (fraudulent finite reinsurance) evidence ... FBIC says with this, its expose' here, authorities need not to look further.
Santa Fe Braun Inc., f/k/a C.F. Braun & Co. Versus Insurance Company of North America, Etal. CG-04-428686 (CA, San Francisco Superior Court) (Click on the following to read The "Third Amended Complaint" abbreviated here down to 21 pages to spare you reading time from the total 208 number of pages comprised in the whole document ... you can read just the sections "Facts Pertinent to the Liability of the Berkshire Companies" (paragraphs 93-107) and the 4th � 8th Causes of Action (paragraphs 125-143) court document details and best confirms some of the alleged fraudulent activities involved.
ITT Industries, Inc. and ITT Gilfillan, Inc., currently a division of ITT Industries, Inc. versus Fireman's Fund Insurance Company Etal BC322546 CA, Los Angeles (WB Comment: We have yet to see the final amended complaint, but we are reliably informed that it contains the same allegations as C.F. Braun. Randall & Quilter and various repeat and related other entities are defendants in several lawsuits alleging business practices intended to defraud policyholders). "ITT vs. Fireman's Fund Etals First Amended Complaint".
J. T. Thorpe versus Texas Property and Casualty, (TX, Austin, Travis County) and J. T. Thorpe versus Federal Insurance Company 9814361 (CA, Los Angeles) (WB Comment: Again, Mr. Ryan is delaying and avoiding payment as it does not fit his payment schedule). J T Thorpe v. Federal Insurance Company; JT Thorpe v. Texas Property & Casualty.
I. C. Industries: Certain Underwriters at Lloyds of London Etal versus Pneumo Abex Corporation Etal 02CV8053A (NY), 6024932002 (NY) (two cases: - WB Comment: The 1999 settlement agreement stipulated a payment in 2002 for $9.5M. Mr. Ryan feels that he should only have to pay $8.5M, and has withheld payment). Certain Underwriters at Lloyd's London v. Pneumo Abex Corp, Etal Complaint Notice Of Removal To Federal Court 02CV8053A; Lloyds London v. Pneumo Abex Corp., Etal. 6024932002 Complaint.
Fuller Austin Insulation Company versus Fireman's Fund Insurance Company BC116835 (CA, Los Angeles) (WB Comment: Could have been settled with a structured payment scheme totaling $18M over 3 years. Mr. Ryan would not pay this as it exceeded his cash flow projections and went to trial, resulting in a verdict of $55M. Currently dragging out the appeal process to avoid payment. Fuller Austin vs. Fireman's Fund Etal Seventh Amended Complaint court document details and also best confirms some of the alleged fraudulent activities involved.
Fuller-Austin Insulation Company v. Highlands Insurance Company Etal. B170079 (CA Appellate Ct, 2nd Dist.). (FBIC: reference Fuller Austin vs. Fireman's Fund above: Fuller Austin vs. Fireman's Fund Etal Seventh Amended Complaint).
State of California versus Underwriters At Lloyd's 239784 (CA, Riverside) and State of California versus Allstate RIC381555 (CA, Riverside) (two cases, WB Comment: Mr. Ryan has created an artificially low number to settle. By sticking with this amount he is delaying timely settlement of funds owed.) State of California versus Allstate, Etals., State of California versus Underwriters At Lloyd's, Etals..
Celanese Intl v One Beacon America Etal. f/k/a Commercial Union Insurance Etal. SUCV2006-1625-BLS (Boston, Suffolk County, MA) (WB Comment: There is a coverage-in-place agreement stating that payments would be made upon submission of bills. However, bills are submitted but not paid, and over $5M has been held for over 1 year. A DJ action in respect of the breach is currently in the works.) (FBIC: 2009 trial testimonies by Berkshire Hathaway's Tom Ryan, V.P., Berkshire Hathaway Staff Members: Robert Burns and Christy Bresson referenced and included above herein). Celanese v One Beacon Original Complaint; Celanese v One Beacon First Amended Complaint; Celanese v One Beacon Second Amended Complaint.
Tom Ryan, Grp. V.P. (01-13-2009), (01-14-2009); Robert Burns, Staff Member (01-21-2009); Christy Bresson, Staff Member (01-16-2009), (01-20-2009).

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