A number of former Executive Life Insurance Co. policyholders have announced the launch of the Executive Life Action Network (www.executivelife.org) to help recover more than $4 billion in losses from the largest financial fraud in California history.
The network was created by Executive Life policyholders Sue and Vince Watson, Wallace Albertson, activist Maureen Marr, and others, to inform and empower policyholders who suffered multi-billion dollar losses as the result of the fraudulent purchase of Executive Life Insurance Co. by Credit Lyonnais and others in 1993.
Credit Lyonnais and other defendants recently admitted to criminally defrauding the U.S. government after a five year investigation into what the Department of Justice called a “massive fraud scheme.” A civil lawsuit filed by the California Department of Insurance is scheduled to go to trial in February of 2005. It is reported that Executive Life policyholders lost $4 billion in account values and future benefits as a result of Credit Lyonnais’ fraudulent purchase of the company.
“The defendants in the upcoming civil case would have the world – and especially the court – believe that this is a victimless crime. This could not be further from the truth. The fact is that our family is just one of thousands that suffered considerable financial and emotional damage as a result of the defendants’ criminal behavior,” said Sue Watson, co-founder of the Executive Life Action Network, and mother of Katie, an annuitant who was left brain damaged due to hospital error as an infant.
“Policyholder recoveries are at risk because Insurance Commissioner John Garamendi has not gone on the record to counter the defendants’ claim that there were no policyholder losses – which are reported to be at least $4 billion,” said Maureen Marr, co-founder of the network and an Executive Life policyholder activist. “With settlement talks in progress and a trial date looming, we believe John Garamendi must seize this last opportunity to acknowledge and redress these huge losses.”
“Defendants have already pleaded guilty to criminal fraud; the Commissioner must now be a strong advocate for the Executive Life victims he represents and not sweep their losses under the rug. We are alarmed by reports in the French press that Commissioner Garamendi has already reduced his settlement demand considerably,” said Marr.
Watson added that, “By launching this online resource center, we hope to identify, organize and mobilize the thousands of others who have suffered. Our losses must be acknowledged so we can receive full restitution from Credit Lyonnais and the other defendants.”
The online Executive Life Action Network (www.executivelife.org) features a concise history of the case, court filings, and a reference library including news coverage. Policyholders and beneficiaries are encouraged to sign up for ELAN Alerts!, as well as to complete a brief registration form. The network also provides a summary of ongoing phone, fax and letter campaigns.
For more information, visit www.executivelife.org.
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