Fidelity Bonds and Corporate Crime Insurance

Goldberg Segalla defends insurers against claims brought by financial institutions and other corporate policyholders involving financial institution bonds, fidelity bonds, and crime policies. We serve fidelity clients throughout the nation and around the world, and our attorneys have directly handled matters in the United States, Europe, South America, and England.

Our fidelity attorneys bring to each engagement the deep and comprehensive understanding of financial operations necessary to handle immensely complex cases involving insider trading, foreign exchange trading, securities and commodities markets, credit and lending activities, money laundering, computer and telecommunications fraud, and other operations. We leverage our extensive and growing network of prominent accountants, international investigators, and financial and banking professionals to assist with examination and analysis of claims.

We have decades of experience counseling insurers, conducting investigations, and handling first-party coverage litigation in matters involving:

  • Fraudulent acts
  • Fund misdirection and misappropriation
  • Embezzlement
  • Account manipulation
  • Employee dishonesty
  • Improper wire transfers
  • Check-kiting
  • ERISA fraud
  • Lending losses
  • Computer fraud
  • Social engineering losses
  • Forgery
  • Ponzi schemes and other financial scams
  • Mortgage fraud
  • Securities fraud
  • Safe-deposit box burglary
  • Catastrophe-related safe deposit box claims
  • Precious metal loss

We also represent reinsurance companies in many fidelity and surety matters, including liquidation of primary and reinsuring carriers. In addition, our experience includes representing U.S. and London underwriters, as coverage and monitoring counsel, in connection with claims under director and officer liability and other professional liability policies.

Representative Matters

Safe deposit box losses: We have conducted and supervised the investigation and coverage analysis of catastrophic safe deposit box losses for underwriters of major financial institutions resulting from major natural and man-made disasters. In each case, Goldberg Segalla developed a strategy and procedure for analysis and reimbursement of thousands of affected safe deposit box-holder claims, supervised a team of experts, and handled all aspects of the resulting litigation. We performed this innovative service in connection with tragedies and occurrences that include:

  • The September 11 terrorist attacks on the World Trade Center
  • Hurricane Katrina
  • Superstorm Sandy
  • A rash of burglaries in the New York City area and across the country

Fraud schemes: We have also led the insurance coverage investigation of many employee dishonesty, embezzlement, and fraud claims, including Ponzi schemes. Our experience in this area includes matters involving:

  • $61 million loss arising from an employee embezzlement scheme in Argentina
  • $15 million loss resulting from employee theft
  • $200 million loss resulting from employee theft
  • $600 million Ponzi scheme
  • Significant mortgage fraud claims in California and Kentucky
  • Employee theft claims throughout the United States

Fraudulent wire transfers: We obtained dismissal for an insurer in a coverage dispute involving fraudulent wire transfers — the first federal court decision on the particular issues involved. In this case, the insured credit union’s employee did not follow security guidelines because he failed to call back the requesting member on a secure phone number. The U.S. District Court for the Eastern District of Pennsylvania agreed with our argument that the exclusion limiting coverage to employee dishonesty or funds transfer coverage was clear and applicable to the facts. The court granted our motion to dismiss and barred the insured’s claims under any other insuring grant.