Public Statement No. 2 of 2010 (10 December 2010)

Summary

This is a public statement issued by the BVI Financial Services Commission (FSC) naming British Atlantic Insurance Company Limited (formerly USPEN Insurance Company Limited) as subject to regulatory directives after its directors were found liable in US federal court for a long-running securities fraud connected to U.S. Pension Trust Corp and U.S. College Trust Corp. The statement explains why the FSC considers the Company's directors no longer fit and proper and sets out the enforcement action taken against the Company.

• Background: The Company's sole directors and shareholders (Iliana Maceiras, Leonardo Maceiras Jr., and Nildo Verdeja) were found by a US District Court to have violated anti-fraud securities laws, siphoning up to 85 percent of investors' contributions in undisclosed fees over a 13 year period; the court ordered large disgorgement and civil penalties.
• Fit and proper finding: The FSC determined the directors do not meet its fit and proper criteria and are no longer suitable to have an interest in or manage the Company.
• Directive issued 1 December 2010: Under section 40(1) of the Financial Services Commission Act, 2001, the FSC directed the Company to cease and desist immediately from engaging in or entering new insurance business, paying claims under existing insurance contracts, and transferring or dealing with its assets, until further notice.
• Removal of directors: The FSC withdrew its approval of the Company's directors and required them to cease performing any function in relation to the Company.
• Ongoing investigation: The FSC states its investigation into the Company is continuing and it will provide further updates as matters progress.

The statement is informational and enforcement-related rather than a general rule; it does not impose new ongoing obligations on other regulated entities, but it directly binds British Atlantic Insurance Company Limited and its named directors to the cease and desist directive described above.

Key obligations

• British Atlantic Insurance Company Limited must cease and desist forthwith from engaging in or entering into any new insurance business.
• British Atlantic Insurance Company Limited must not pay any claims under existing insurance contracts until further notice from the FSC.
• British Atlantic Insurance Company Limited must not transfer, dispose of, deal with or otherwise diminish its property or assets until further notice from the FSC.
• The Company's directors (Iliana Maceiras, Leonardo Maceiras Jr., and Nildo Verdeja) must cease performing any function in relation to the Company following withdrawal of the FSC's approval of their appointment.

Applies to

insurance provider, long term life and disability insurance licensee

Deadlines

• 1 December 2010: Date the FSC issued the directive to the Company under section 40(1) of the Financial Services Commission Act, 2001, requiring immediate cease and desist actions.