People’s Trust Insurance CEO suing his partner’s widow for $4 million he says he overpaid in 2014 buyout
Schaeffer and Gold are now suing each other in
In his suit, Schaeffer is demanding that
As a result, Schaeffer's suit says, the
In her suit, she contends that Schaeffer defaulted on the agreement when he missed a
The memo includes the words "Privileged and Confidential Inadmissible Settlement Communication" and is headed "To:
"Unfortunately, I also learned that Mike spent almost every day of the week at a casino and at a massage parlor. And it appears that he was using cash from the company to finance these activities," the memo states.
"Upon reviewing the books and records of the company, we have found that Mike had apparently engaged in CRIMINAL activity with the company, including the borrowing of funds from the insurance company. This is a crime. There are many other examples. But this company that was in supposedly good shape was actually in shambles, and lost
The memo then contends that an independent forensic accounting firm reviewed the prior valuation and found it was actually worth
The memo declares, "The prior deal is simply unfair and we have to change it. To put it simply, I am not paying anything else to you."
The memo then states "we can either do this the 'easy way' or the 'hard way.'"
Under the "easy way,"
Under the "hard way," "I will ask a judge to cancel our deal and order that I do not owe you anything else. But I am also going to ask the judge to have you pay me back the money that you owe me." The litigation could take years, the memo states, adding, "I can easily see this costing you close to
"I don't want to go that route, especially since it will require me to share publicly information about Mike that will be embarrassing. But I will do it if I have to."
Schaeffer's lawsuit does not include documents backing up his assertion that the company was overvalued in 2014, nor does it include documentation of its current financial status.
One of
According to Mark, Schaeffer has not disputed the memo's authenticity.
Plus, "I have not seen any evidence suggesting the company was overvalued when he bought it," he said, adding, "What Schaeffer has done with the company in the past four years he's been running it ... I guess we'll find out."
Schaeffer and his attorneys were unable to be reached by email or phone on Friday.
Schaeffer and
At the end of 2017, it had 101,216 policies statewide and 38,822 in
In a
Asked Thursday about Schaeffer's accusations that the company was in "a shambles" and lost
But in response to a question about a different matter earlier on Thursday, Rosen said that the company's book of business is "healthier than it's ever been," enabling "us to maintain our financial strength to ensure we will be there when our policyholders need us most."
A state insurance official said the
"We will work closely with the division to determine the appropriate steps, if any, to take," said
VanSickle on Friday forwarded a copy of the company's 2016 financial statement, which shows it sustained a net underwriting loss of
Before co-founding
In addition to helming
[email protected], 954-356-4071, twitter: twitter.com/ronhurtibise
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