Home Consumer Broward Insurance Firm-Turned-‘Ponzi Scheme’ Cost Florida, Policyholders $100 Million

Broward Insurance Firm-Turned-‘Ponzi Scheme’ Cost Florida, Policyholders $100 Million

SHARE
insurance
Broward entrepreneur Philip Morgaman aboard his luxury yacht, Golden Rule, before AequiCap Insurance Company was declared insolvent in 2011.

The final act in the little-noticed liquidation of a Fort Lauderdale-based insurance company that regulators say evolved into a “Ponzi scheme” that cost Florida and its policyholders more than $100 million is set to unfold in court this spring.

The Florida Department of Financial Services’ fraud case is an offshoot of its receivership of AequiCap, the property and casualty insurance company the state was forced to take over – and pay claims for – when it went belly up in 2011. It was one of Florida’s largest insurance company failures.

AequiCap’s chairman and principal owner was South Florida insurance, taxi and private school entrepreneur Philip Morgaman, a longtime business partner of Broward Yellow Cab kingpin Jesse Gaddis. State court filings say Morgaman milked big money from AequiCap, using the insurer’s funds to provide him with “a form of self-insurance for his business ventures unaffiliated with AequiCap as well as to perpetuate his extravagant lifestyle.”

By Dan Christensen, FloridaBulldog.org, Special to SouthFloridaReporter.com, Feb. 7, 2017

Click here for reuse options!
Copyright 2017 South Florida Reporter
SHARE
The FloridaBulldog is led by its’ founder, Dan Christensen. Christensen is an award winning former investigative reporter for The Miami Herald and Daily Business Review, and one of South Florida’s most experienced reporters. The reports they publish are strictly from their own investigations.