More Coastie DD.........Another D & O Insurer Backing Out. . .
This came out in a new filing by Huff's defense where he is requesting his $200K bond be returned to help cover his defense costs.
"However, as a result of Mr. Huff’s change of plea to guilty on April 6, 2010, CCIC has refused to pay the outstanding legal fees and future legal and expert witness fees. CCIC has not paid any legal fees since January 2010 and is seeking reimbursement for any fees paid under the policy to date."
"Accordingly, Mr. Huff now seeks to release the cash bond to defray these fees and to allow Mr. Huff to prepare for his upcoming sentencing. The government opposes this motion, claiming that they seek to seize the cash bond for restitution in the case."
Insurer: Carolina Casualty Insurance Company
INSURED: GLOBETEL COMMUNICATIONS CORP.
Policy: Directors and Officers Liability Insurance
Limit of Liability: $5 million
Policy Number: 1694226/1
"Mr. Huff's Plea Agreement admitting conspiracy to commit securities fraud implicates the Fraud Exclusion in Carolina's Policy."
"Carolina denies coverage for Mr. Huff pursuant to the Fraud Exclusion in light of his Plea Agreement in the Criminal Case. Moreover, Carolina's denial of coverage extends to the SEC's related Civil Case. . ."
"Carolina further demands that Mr. Huff reimburse all legal fees and costs paid by Carolina on Huff's behalf in defense of the Civil Case and the Criminal Case."
What little coverage left from the Admiral policy after the Class Action should be long gone by now. The Chubb Group is currently in court with the Company over the D & O coverage they provided. Now the policy provider that is covering the current costs of the civil and criminal trials is backing out and is seeking to be reimbursed.
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PLEASE FEEL FREE TO STAND IN FRONT OF THEM.
FREEDOM IS NOT FREE.
