Filed 1999Last activity Sep 5 2008
Civil Action
Lisa, S.A.'s reinsurance fraud claim against Leamington Reinsurance Company Limited and Avícola Villalobos, S.A.
- Lisa, S.A.
- Leamington Reinsurance Company Limited
- Avícola Villalobos, S.A.
Lisa, S.A. sued Avícola Villalobos, S.A. and Leamington Reinsurance Company Limited before the Supreme Court of Bermuda, alleging that Multi Inversiones and members of the Bosch-Gutiérrez and Gutiérrez-Mayorga families diverted millions of dollars in dividends legally owed to Lisa. The scheme used fictitious reinsurance policies to funnel Avícola Villalobos Group profits into Leamington Reinsurance Ltd., an offshore structure, deliberately excluding Lisa despite its one-third ownership of the group. The Court found that Multi Inversiones, not Avícola Villalobos, S.A., was the true command center that directed the operation. The issued on September 5, 2008 awarded Lisa $1,954,104.14 plus interest.
Outlook
In September 2008 the Supreme Court of Bermuda held Leamington Reinsurance Company Limited liable to Lisa, S.A. for conspiracy to defraud, for $1,954,104.14 plus 7% interest, and dismissed all claims against Avícola Villalobos, S.A. Lisa, S.A. and Avícola Villalobos Group companies later told Guatemalan courts the judgment had become final.
Analysis
I. Supreme Court of Bermuda Judgment
The Supreme Court of Bermuda issued its on September 5, 2008, finding that Multi Inversiones operated as the true strategic and administrative command center of the Avícola Villalobos Group. Although Lisa, S.A. initially directed its claims against Avícola Villalobos, S.A. (AVSA), the Court concluded that AVSA did not control the financial structure or the insurance mechanisms used to divert Lisa's dividends. Multi Inversiones provided strategic planning, legal advice, fiscal strategy, and high-level administration services to the group's companies.
The Court found that the conspiracy involved the so-called "Controllers", a term Lisa, S.A.'s pleading applies to several executives. These individuals, together with other executives aligned with the Bosch-Gutiérrez and Gutiérrez-Mayorga families, exercised real control over the group and used Multi Inversiones as the operational platform to execute the misappropriation.
The diversion mechanism operated in three stages:
- Fictitious premiums routed to Leamington Reinsurance. The Controllers created "transport reinsurance policies" that the Court found were not genuine insurance. The premiums, inflated or entirely fabricated, served only to shift Avícola Villalobos Group profits into Leamington Reinsurance Ltd. under the appearance of legitimate insurance transactions.
- Offshore dividends of approximately $10,000,000.00. After receiving these funds, Leamington declared millions in dividends between 1996 and 1998. The Court concluded that these distributions did not result from actual insurance activity but were simply Avícola income funneled through an offshore company controlled by the Controllers.
- Dividends redirected exclusively to the Gutiérrez family branches. Instead of sharing profits proportionally among all Villamorey shareholders, the Controllers redirected dividends exclusively to the Bosch-Gutiérrez and Gutiérrez-Mayorga family branches, deliberately excluding Lisa despite its one-third ownership.
The Court awarded $1,954,104.14 plus interest to Lisa, S.A., representing the portion of diverted funds proven at trial. The judgment stands as independent judicial confirmation that Multi Inversiones directed the misappropriation and that senior members of the Gutiérrez families personally benefited from the scheme.
Documents
1| Document | Date |
|---|---|
| Sep 5 2008 |