The Philadelphia Inquirer PhillyDeals column [The Philadelphia Inquirer]
By Joseph N. DiStefano, The Philadelphia Inquirer | |
McClatchy-Tribune Information Services |
The firm,
According to the Commonwealth Court lawsuit, First Sealord founders
The suit also blames the group for "under-reserving and underreporting" claims and losses to state officials and the firm's own auditors and actuaries, and for "the secretive diversion of their time, attention, and other resources" away from the insurer and "to the betterment of multiple real estate development and hotel companies owned and operated by certain Defendants."
Brier and Drauschak were developers of the
Messages left at the
Brier, a former U.S.
When the construction industry stalled in 2008, Drauschak tried to grow the affiliated company, Broadlands, as an alternative energy construction consultant through expensive global marketing efforts. Company officials called this "elephant hunting." These efforts cost a lot but brought no new business, according to the lawsuit.
By the end of 2010, "Broadlands owed (First Sealord) over
The "diversion of millions" during those years provided "no benefit whatsoever" to First Sealord, according to the suit.
As the company's financial losses mounted, the executives destroyed or removed records, the state suit alleges.
The lawsuit demands the executives return the money they took from First Sealord. It also alleges "wrongful diversion, raiding cash collateral," and at least one count of "civil conspiracy in breach of fiduciary" duty against each of the First Sealord officers.
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