Calif. Commissioner Issues Statement on Settlement of Executive Life Case

December 19, 2003

Insurance Commissioner John Garamendi praised the U.S. Attorney’s Office for its work in securing a $770 million settlement of the criminal case against Credit Lyonnais and others involved in the Executive Life Insurance Company (ELIC) fraud case. The actions of Credit Lyonnais and the other defendants in the fraudulent acquisition of ELIC helped expose its 331,000 policyholders to serious financial peril.

Commissioner Garamendi has worked to ensure that the illegally acquired money is returned. As part of the settlement, $110 million will go directly to the California Department of Insurance to be distributed to policyholders.

“I congratulate the U.S. Attorney’s office on reaching this agreement to end its criminal case against Credit Lyonnais, the French government, and others involved in this massive fraud. However, this settlement does not address all of the damages suffered by policyholders in California,” said Insurance Commissioner John Garamendi.

“There are real victims who suffered real consequences who must be compensated for their loss. No one, including Credit Lyonnais, should profit from criminal or fraudulent acts. My Department’s lawsuit against the defendants will continue, and as I have promised from the beginning, I will continue to pursue justice.”

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