Edward Marvin Grushko

A wannabe Bermuda insurer whose license application was turned down in 2004 has resurfaced in Barbados, where it has teamed up with a group whose principals include a convicted criminal. The Barbados Supervisor of Insurance issued an insurance license to River Reinsurance Limited on December 16, 2005. 

A publicly-listed company in the United States whose subsidiaries include an offshore insurer is being sued in New York by investors who claim they were victims of a $50 million securities fraud. Strategy International Insurance Group Inc., whose shares are currently trading on the Over-The-Counter Bulletin Board at just six cents per share, misrepresented its assets and concealed “material negative facts” about some of its “principal executives and directors” in a private placement memorandum, according to the plaintiffs, who include investment funds in the British Virgin Islands and Cayman Islands. 

A New York-based attorney with a conviction for securities fraud is an insider in a penny stock firm controlled by the principals of Bermuda-based Lines Overseas Management, OffshoreAlert can reveal. The involvement of Edward Marvin Grushko casts further suspicion on River Capital Group Inc., which is raising money from the public by claiming it intends to operate as a Bermuda insurer without disclosing that two licensing applications were turned down by the Insurance Admissions Committee of the Bermuda Monetary Authority last year and that no further application has been made since then.