Carolina Re

Fortress Re insiders agree to settle for $400 m

July 31, 2004

Fortress Re Inc. and its two principals, Maurice Sabbah and Kenneth Kornfeld, have reportedly agreed to settle a $1 billion arbitration award by giving up assets worth more than $400 million.The assets include "lavish homes, antiques, a Gulfstream III jet and other assets", according to a report in the Wall Street Journal on July 21, 2004.

Fortress Re dispute halted for Japan depositions

September 30, 2003

Arbitration proceedings in North Carolina regarding the failed Fortress Re aviation reinsurance pool was halted recently to allow emergency depositions to be taken in Japan.Hearings were already underway when Fortress Re Inc., of North Carolina, requested depositions of four current

Auditor Deloitte & Touche seeks to avoid Carolina Re depositions

October 31, 2002

Deloitte & Touche is attempting to prevent the liquidators of Bermuda-registered Carolina Re from deposing five of its staff, including two based in Bermuda.Carolina Re's auditor has already lost one motion to quash subpoenas of its employees at the United States Bankruptcy Court for the Southern District of New York and is now seeking leave to appeal.

Carolina Re used to siphon assets from aviation pool, claims insurer

March 31, 2002

Bermuda-domiciled Carolina Re was used to siphon approximately $470 million of premiums from a North Carolina-based aviation reinsurance pool known as Fortress Re, it has been alleged. And the principals who controlled both companies have been accused of providing the pool's members with false financial statements showing "exceptional" profits instead of "exceptional" losses.