Petroleo Brasileiro SA, Brazil et al vs. U. S. Fidelity et al
Oil and Gas Surety Claim, Financial Advisor Surviving a Bankrupt Contractor Petrobras, the national oil company of Brazil, filed a claim under its surety bond with two U.S. insurance carriers, US Fidelity and Guaranty Company and American Home Assurance Company who had provided coverage to Brazilian contractors for the construction of two naval oil rigs known as P-19 and P-31 at a coverage amount of $110 million and $168 million respectively. P-19 was the conversion of a platform formerly used for oil and gas exploration into a semisubmersible oil and gas production platform. P-31 was the conversion of an oil...
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Guarantee Company of North America v. Gordon Capital Corp, Toronto
Securities Fidelity Claim, Management Fraud A Lesson in Derivatives Gordon Capital was an investment dealer and brokerage firm in Toronto that carried a $25 million fidelity insurance policy with Guarantee for “dishonest and fraudulent acts committed by an employee…” and Eric Racher was a Gordon partner responsible for the Derivative Products Group in Toronto. Bottom line: Because of Rachar’s misrepresentations, Gordon accepted worthless collateral which exposed the firm to high risk. On June 14, 1991, the CEO of Gordon received a phone call from a third party who expressed some concerns and two weeks later I received a phone call...
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