Couple who lost $8.5m to Maddof want AIG home payout
Robert and Harlene Horowitz, who claim to have lost $8.5m to Bernard Madoff’s Ponzi scheme, are suing AIG for not paying out a fraud-protection clause in their home insurance, Dow Jones reports.
The Manhattan District Court case, alleges AIU Holdings and American International Insurance of California, refused to payout the Los Angeles pair’s AIG Fraud SafeGuard policy.
They had invested money with Madoff's firm since about 1997. The complaint claims AIG has refused to pay for amounts beyond any initial investments with Madoff and has denied claims related to "any alleged gains, growth or appreciation."
Class action
The Horowitz Family Trust, with Robert Horowitz, reportedly had $8.5m in its account with Madoff.
The lawsuit is seeking class-action status on behalf of all AIG policyholders who lost money in the Madoff scam and held AIG homeowner's policies with the fraud protection.
Other insurers sued over Madoff
Reuters adds that the wording on the policy covered losses "directly from fraud, embezzlement, or forgery."
Bloomberg added that XL Capital has received 36 claims tied to Madoff’s Ponzi’s scheme. David Duclos, head of insurance operations, said XL has adequate reserves, he said.
