Defendant Name: AmTrust Financial Services, Inc.

Defendant Type: Public Company
SIC Code: 6411
CUSIP: 03235930

Initial Case Details

Legal Case Name SEC v. AmTrust Financial Services, Inc. and Ronald E. Pipoly, Jr.
First Document Date 17-Jun-2020
Initial Filing Format Civil Proceeding
Case Number 20-cv-04652
Allegation Type Issuer Reporting and Disclosure
Federal District Court New York, Southern District of New York

Violations Alleged

Exchange Act
• Rule 12b-20
• Sec 13(a)
• Rule 13a-1
• Rule 13a-13
• Rule 13a-15
• Sec 13(b)(2)(A)
• Sec 13(b)(2)(B)
Securities Act
• Sec 17(a)(2)
• Sec 17(a)(3)
Additionally, Ronald E. Pipoly, Jr. is alleged to have aided and abetted AmTrust Financial Services, Inc.'s violation of Rule 12b-20 of the Exchange Act.
Ronald E. Pipoly, Jr. is alleged to have aided and abetted AmTrust Financial Services, Inc.'s violation of Sec 13(a) of the Exchange Act.
Ronald E. Pipoly, Jr. is alleged to have aided and abetted AmTrust Financial Services, Inc.'s violation of Rule 13a-1 of the Exchange Act.
Ronald E. Pipoly, Jr. is alleged to have aided and abetted AmTrust Financial Services, Inc.'s violation of Rule 13a-13 of the Exchange Act.
Ronald E. Pipoly, Jr. is alleged to have aided and abetted AmTrust Financial Services, Inc.'s violation of Rule 13a-15 of the Exchange Act.
Ronald E. Pipoly, Jr. is alleged to have aided and abetted AmTrust Financial Services, Inc.'s violation of Sec 13(b)(2)(A) of the Exchange Act.
Ronald E. Pipoly, Jr. is alleged to have aided and abetted AmTrust Financial Services, Inc.'s violation of Sec 13(b)(2)(B) of the Exchange Act.

Resolutions

First Resolution Date 17-Jun-2020
Headline Total Penalty and Disgorgement $10,300,000

Related Documents:

comp-pr2020-135 17-Jun-2020 Complaint
Complaint
The SEC stated: "From March 16, 2010 through February 29, 2016 (the “Relevant Period”), AmTrust failed to disclose the Company’s process for reporting management’s best estimate of loss reserves — a process performed by Pipoly, the Company’s former Chief Financial Officer (“CFO”)."
LR-24838 17-Jun-2020 Litigation Release
Insurance Company and Former CFO Charged with Faulty Loss Reserves Disclosures
The Commission stated that: "[It] charged international insurance company AmTrust Financial Services, Inc. and its former CFO Ronald E. Pipoly Jr. with failing to disclose material facts about how the company estimated its insurance losses and reserves. They have agreed to pay a combined $10.5 million to settle the SEC's charges."
2020-135 17-Jun-2020 Press Release--Civil Action
Insurance Company and Former CFO Charged With Faulty Loss Reserves Disclosures
The Commission stated that: "[It] charged international insurance company AmTrust Financial Services Inc. and its former CFO Ronald E. Pipoly Jr. with failing to disclose material facts about how the company estimated its insurance losses and reserves. They have agreed to pay a combined $10.5 million to settle the SEC’s charges."
court_doc10_20-cv-04652 19-Jun-2020 Court Docket Document
Final Judgment as to AmTrust Financial Services, Inc.
On June 19, 2020, the Court issued a final Judgment as to AmTrust Financial Services, Inc. stating: "Defendant AmTrust Financial Services, Inc. ("Defendant") consented to entry of this Final Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment."

Other Defendants in Action:

Ronald E. Pipoly, Jr.