Hiscox has won a judgment for more than $1.8 million against a former executive whom the company accused of fraud.
Chief Justice Narinder Hargun entered summary judgment for Bermudian-based Hiscox Services Ltd, Hiscox Agency Ltd, and Hiscox Insurance Company (Bermuda) Ltd, last Friday on the grounds of breach of fiduciary duty and/or breach of trust by Yuval Abraham.
The judgment was for $1,506,960, plus 334,000 Swiss francs ($336,600).
Hiscox accused Mr Abraham of using corporate funds to buy luxury watches and other items from Swiss manufacturers Montres Journe and Kari Voutilainen, allegedly falsifying invoices in an attempt to conceal his actions. The transactions in question took place between June 6, 2017 and February 16, 2018.
Mr Abraham, who allegedly holds Polish, South African, and Israeli passports, has left Bermuda and is believed to be currently living in Israel, according to the judgment.
Mr Justice Hargun said Mr Abraham had made only general denials of the detailed claims made against him by Hiscox.
“The defendant has not raised any legal or factual issue which would be an answer to the claims made by the plaintiffs or which would otherwise warrant this matter proceeding to a trial,” the Chief Justice stated.
Mr Abraham, who was represented by attorney Saul Froomkin QC, “has not filed any evidence in response to the application for summary judgment. Instead the defendant has filed a Notice of Motion seeking an order that the summary judgment application be stayed until the criminal investigation and any subsequent criminal proceedings against the defendant have been concluded”, Mr Justice Hargun stated in his judgment.
“In argument Mr Froomkin did not advance any particular reason why the court should exercise its discretion to stay the summary judgment proceedings.”
The Bermuda Supreme Court ordered a worldwide freezing of Mr Abraham’s assets on April 25 this year, on the same day that the three Hiscox entities had sued him.
Mr Abraham was terminated from his job as chief financial officer of Hiscox Services Ltd, the service company that manages expenses for Bermuda legal entities for the Hiscox Group, on April 27 this year.
In refusing Mr Abraham’s application for a stay, Mr Justice Hargun stated: “I am not satisfied that the continuation of the application for summary judgment runs a real risk that any criminal proceedings against the defendant would or are likely to be prejudiced.”
News of the judgment was first reported by the Offshore Alert website.
Keith Robinson and Henry Tucker of Carey Olsen Bermuda represented Hiscox.
•It is The Royal Gazette’s policy not to allow comments on stories regarding court cases. As we are legally liable for any slanderous or defamatory comments made on our website, this move is for our protection as well as that of our readers