• Pervasive and Repeated Non-payment Of Claims In Bad Faith
Widespread Systemic Use Of Bad Faith Insurance Claims Practices And Fraudulent Schemes
• Falsify Financial Records
• Defraud Policyholders, Claimants And Insureds
• Lie And Defraud Insurance Commissions
Maintain Reserves In Cases As Low As 10% Of Established Minimum $$$ Amounts Required
Systemically Strip And Loot The Treasuries, Reserves, Premiums And Cash Flows Of Numerous Companies It Does Business With, Hastening If Not Responsible For The Insolvency And/Or Demise Of These Companies
• Write Finite Insurance Plans That Were/Are Not Insurance But In Reality Loans
• Commit Illegal Dealings And Become The Party Responsible To Satisfy The Obligations Of Other Companies Based On Surreptitious Transfer Of Assets And Other Conduct That Falsely Enriched Berkshire Hathaway Companies And Left These Other Companies Undercapitalized And Unable To Pay Their Claimants Obligations, And Causing Berkshire Hathaway Companies To Become In Control And Alter Egos And The Real Parties-In-Interest Under These Other Companies Policies
• Commit Numerous Other Illegal Acts And Dealings Regarding Tortious Breach Of The Implied Covenant Of Good Faith And Fair Dealing

Regarding the "Widespread Systemic Use Of Bad Faith Insurance Claims Practices And Fraudulent Schemes", they all had one thing in common, to put-off and/or do whatever necessary, legally or illegally, not to pay claims ultimately benefiting parent corporation Berkshire, their own company and themselves personally. One such example of the many alleged examples of outrageous fraudulent schemes and activities committed included a wide and extremely diverse range of illegal acts which included looting the treasury(ies) of (non-Berkshire-owned insurance companies i.e. Kemper Companies [which includes American Motorists Insurance Company (AMICO)] div. Lumbermens Insurance Group in liquidation (a/k/a 'runoff') which had 'cap cover' reinsurance policies issued by Berkshire Hathaway reinsurance company "National Indemnity Company". 

In this case much if not most of Kemper Companies, which includes Parent Lumbermens Group and active entity American Motorists Insurance Company (AMICO), a non-owned Berkshire insurance company group originally with an estimated total upwards of some $7 billion in entirety in it's treasuries ultimately had a significant portion of upwards of some $6.7 billion paid out and/or transferred by/through Berkshire Companies entities (i.e. National Fire & Marine, NICO, NICO Mid-America, Columbia, Randall America the same "Randall" entity owned by Ken Randall America associated with the ownership of Randall & Quilter) and before allegedly selling it off to an entity of UK-based Randall & Quilter, leaving it with inadequate funds left to pay policyholders outstanding unpaid claims (see Santa Fe Braun court case details referenced herein).

Furthermore in this case through a number and a maze of collaboration agreements, Berkshire Hathaway (BH) actually assumed authority ("dominion") of Kemper Companies, [or Kemper Companies Group under the name American Motorists Insurance Company (aka AMICO)], thereby actually taking over Kemper Companies, a group of companies they reinsure as well as taking over (the reinsured's) Kemper Companies' AMICO daily operations and actually becoming 'in complete control' (an action referred to as 'alter ego') of Kemper Companies and AMICO, the Insured and Reinsured Company  ... in addition to (much more):

• Thomas M. Ryan, Vice President National Liability and Fire Insurance Company, Vice President National Indemnity Company (NICO), President Resolute Management, Inc. New England Division, Vice President National Indemnity Company (NICO) of Mid-America, Vice President National Fire and Marine Insurance Company and Vice President of The Berkshire Hathaway Insurance Companies Group and others as previously referenced; (Whistleblower: Berkshire Hathaway Insurance Companies  Group intentionally and repeatedly did not pay and/or put-off paying claims to increase Berkshire Hathaway's cash flow and the float which decisions not to pay in many cases went all the way to the top at Berkshire Hathaway.
  
  You can read the admissions of illegal bad faith insurance practices committed in current confirming court allegations and testimonies as indicated in the ongoing 2009 litigation in the CELANESE INTERNATIONAL CORPORATION v. ONE BEACON INSURANCE COMPANY (formerly known as Commercial Union Insurance Company), ETALS., Case #SUCV2006-1625-BLS2 from the COMMONWEALTH OF MASSACHUSETTS SUFFOLK, SS Superior Court in confirming that the FBIC Whistleblower allegations of bad faith claims handling and fraudulent wrongdoings by the involved parties in 2005 and prior (going back to 1999), are in fact alive and well, ongoing and growing in this very 2009-2010 day. READ: Berkshire's Tom Ryan's following court testimony and the testimonies of members of his staff which links follow below (underlined links in blue), which are all in agreement, regarding their admissions of guilt in their company's commission of not paying overdue claims, in many and repeat cases over multi-year periods and committing bad faith insurance practices by his Berkshire-owned insurance Group:
  
  • Tom Ryan, Grp. V.P.  (01-13-2009),  (01-14-2009);
  • Robert Burns, Staff Member (01-21-2009); Robert Burns Memo (Memo
    Note: "ALE" stands for "Allocated Loss Adjustment Expense");
  • Christy Bresson, Staff Member  (01-16-2009),  (01-20-2009);
     
Ajit Jain, located in Stamford, CT offices, is Executive Vice President of Berkshire Hathaway's Insurance Companies Group, President of Berkshire Hathaway's Reinsurance Companies. Jain also holds various senior executive-level titles at Berkshire Hathaway subsidiary insurers including Exec. Vice President of National Indemnity Co (NICO), a little known reinsurance powerhouse involved in much of the alleged illegal activities. NICO is listed as headquartered at Berkshire Hathaway corporate headquarters in Omaha, NE that is alleged to be the vehicle for much of the fraudulent activity. Jain is alleged to have various and overall direct knowledge and indirect involvement in the alleged Berkshire Hathaway fraudulent bad faith insurance companies practices and indirect knowledge of some of the operational fraudulent schemes ... and authority and say (per Tom Ryan, etc.) as to whether claims, and other larger decisions,  etc. were/are to be paid, and other larger payments i.e. legal expenses, etc. can be made; Warren Buffett has frequently and openly reiterated that Ajit Jain is the only executive at Berkshire that he religiously speaks to everyday 'without fail';
Forrest Krutter, General Counsel & Corporate Secretary of Berkshire Hathaway Inc. has various and overall direct knowledge and indirectly semi-active involvement in the alleged Berkshire Hathaway fraudulent bad faith insurance companies practices and fraudulent schemes ... and alleged authority and say as to whether claims, and other larger decisions,  etc. were/are to be paid, and other larger payments i.e. legal expenses, etc. can be made;
Warren Buffett, Chairman where there is strong evidence, (much of which is circumstantial), that allegedly conclude that he has direct knowledge as well as limited indirect involvement in his company's alleged committed systemic bad faith insurance practices and fraudulent schemes and activities that have reaped Berkshire Hathaway Inc. billions of dollars at the expense of many thousands of policyholders and claimants;
 

FYI, reinsurance is simply insurance for your insurance company in the event you make a claim or bring a lawsuit to be able to collect on a claim denied. It is important to note and for policyholders to know that it is primarily reinsurers that control and pay much if not most of all policyholders and third parties insurance claims (and not insurance companies that policyholders buy insurance from, send premiums to and have insurance policies with).

Berkshire Hathaway Inc. has grown to be among the largest, if not the largest, reinsurers (i.e. General Reinsurance Company, National Indemnity Insurance Co., etc.), run-off and third party claims management administrators with significant operations (e.g. Resolute Management, etc.) in the United States and working in concert with other non-Berkshire-owned companies outside the U.S.. In addition, Berkshire Hathaway owns a multitude of insurance and reinsurance companies in the U.S. Berkshire Hathaway owns upwards of 40-50 insurance, reinsurance, runoff and third party claims administrator companies, many working 'very closely' together. Berkshire Hathaway is among the U.S. largest group insurers and insurance industry operators.

We realize that there is some redundancy in our expose' which is not intentional. In most cases it is because there are numerous cases where the same illegal activities are involved in many and such cases where the defendants and parties are repeated and the same defendants and parties are named in many cases and with the same allegations. As evident by the Whistleblower allegations which will be published and announced here on this website and which will follow, FBIC's ongoing investigation and expose includes a significant number of legal cases, legal testimony and involves many companies with questionable reinsurance and cap-covers reinsurance illegal activities which comprises a substantial amount (truck-loads) of information too much to publish here but that which we will expose and condense to take as little time as possible to put up here on the website and make as easily readable as possible. Yet with all FBIC has learned about Berkshire Hathaway's alleged illegal bad faith insurance, reinsurance, runoff and third party claims administrator operations and alleged illicit fraudulent schemes and activities, we know they "represent just the very tip of the iceberg".

Allegations made by the whistleblower to FBIC starting five years ago involve billions of dollars of illegal and ill-gotten bad faith insurance gains to Berkshire Hathaway and other co-conspirators at the expense of America's policyholders and claimants ... and even more importantly as a result the subsequent losses to "hundreds of thousands" moreso "millions" of Americans and victims, and the loss of their well-being, the loss of wealth and the annual loss of millions of U.S. jobs annually, Americans submit proposal for jobs creation and solution to Americans loss of wealth retention due to widespread bad faith insurance practices ... and asks President Obama to listen, consider and help.

The FBIC-Whistleblower story highlights in detail and summarizes when possible the real behind the scenes goings-on and illicit operations supported and confirmed with numerous court cases, documents and testimonies, contributing to further expose just how widespread the frauds and illegal bad faith insurance activities are within Berkshire Hathaway operations and the U.S. insurance and limitedly regulated but mostly unregulated reinsurance, third party claims administrators and runoff segments of the insurance industry today.

FBIC, which operates mainly on donations from the Public made on this website, with limited means knew it did not have the adequate resources to have undertaken such a daunting and enormous investigative task. Even though it has spent the better part of five years investigating the veracity of the Whistleblower's allegations being limited without having the benefit of subpoena power. FBIC's investigations are presently continuing and ongoing. FBIC has learned enough on its own investigations that it agrees with the Whistleblower that the many court cases and testimonies in FBIC's possession represent just "the very tip of the iceberg".

Note: FBIC are not lawyers ... FBIC is a non-profit consumer insurance advocacy and we let the American People be the judge and make their own decisions on related insurance issues esp. since we have learned over the years and gotten to the point not to expect the questionably corrupt as well as grossly understaffed state insurance regulatory agencies to do any meaningful investigations and the states' attorneys offices are understaffed to handle such investigations on their own ... in this case the federal investigative authorities are needed and essential to investigate the widespread bad faith insurance practices, fraud and corruption that exists 'herein' and is so pervasive and prevalent in our country today and for the past several decades. To the best of FBIC's knowledge and due-diligence, and limited without having subpoena power in its investigations toolbox, and with FBIC's ongoing investigations, FBIC has confirmed as much of the information as was possible and of note was unable to disprove any of the Whistleblower's allegations.

The Whistleblower's allegations will start and be cited here shortly followed by supporting court cases of illegal bad faith insurance practices and fraudulent activities. (Note: There will be frequent updates, many more exposed court cases and testimonies to follow in the weeks and months ahead).

(Attention Plaintiff Insurance Attorneys: FBIC's investigation into Berkshire Hathaway-National Indemnity-Cavell-Resolute Management bad faith insurance and fraudulent practices continues and is ongoing as there are many more cases being fought in court rooms. The investigation was initiated as a result of information received by FBIC from a Whistleblower. FBIC is a consumer insurance advocacy and not lawyers. FBIC requests whistleblowers and/or plaintiff lawyers to please send FBIC more related court cases, court case complaints, supporting documentation and court testimonies by clicking: FbicLawyerInquiry@badfaithinsurance.org, or Whistleblowers, ... (anonymously if you wish so as not to get involved or be referenced ... that is unless you and/or your law firm wish to be referenced and cited for your lawyerly contribution to the U.S. and help in this significant investigative expose 'mentioned' with your published materials which we are glad to do with your permission).

Most Americans don't believe for a minute and suspect that the 2008-2009 felony convictions of five (5) top and senior level Berkshire Hathaway owned General Reinsurance executives which includes Ron Ferguson, Christopher Garand, Elizabeth Monrad, Robert Graham, John Houldsworth, and one (1) AIG executive Christian Milton could not possibly represent a one-off solo occurrence of fraudulent activity by Berkshire Hathaway and General Re ... rather Berkshire Hathaway Insurance-Reinsurance Companies Group appear to be consumed with systemic fraud practices perpetrated by bad faith insurance, reinsurance and related by Berkshire Hathaway Insurance Companies (and AIG). In addition, in spite of committing a $500 million fraud, these convicted felons not only received extremely light beyond the court sentencing guidelines, but they are not in prison for various reasons ... which this decade pretty much follows the usual court leniency and non-prison legal chicanery which occurs when white-collared top level insurance executives are found guilty of committing fraudulent crimes ... which should be a real embarrassment by the U.S. to the rest of the world. There's more, much more ... and just the tip of the iceberg.
 
Berkshire Hathaway has shown more and more to be overwhelmingly consumed with pervasive and widespread fraudulent activities as Americans grow to learn, now with the FBIC-Whistleblower expose', that the GenRe-AIG case is not just a one-off but is part of a pattern of a larger number of many other similar and various other illegal and criminal insurance-reinsurance based activities as supported by the further fraudulent activities such as in the 2009 former Ex-Chief of GenRe British Unit, Milan Vukelic, whose illegal activities put him in prison in the U.S. for 18 months in 2000, then got him fired at GenRe in the U.S. in 2005 and now in 2009 got him banned from ever holding a position of trust in the financial-services industry in Britain and Australia after he was found to have helped companies illegally conceal losses. The pervasive frauds and widespread bad faith insurance companies practices destroys hundreds of thousands companies and individuals victims and the loss of ultimately upwards of millions of jobs annually throughout all industries ... lost forever and never to be regained to the sole benefit of the bad faith insurance companies and their executives ... just the tip of the iceberg.

The following mainstream media articles about Berkshire Hathaway Insurance-Reinsurance Companies related crimes internationally (and it's Chairman Warren Buffett), specifically selected now to recap in retrospect as written previously. Since the U.S. insurance industry is so powerful and among the U.S. largest advertisers, most of the time their illegal activities don't reach the U.S. mainstream media but have to be read via international mainstream media. Even though these criminal, illegal and illicit insurance activities have proven to be widespread, state regulators, as recently proven, repeatedly do little and repeatedly decline to investigate. Federal investigatory authorities, such as The U.S. Justice Department and the FBI although they say they are very much interested, need someone in charge to order and focus on a sweeping investigation ... (see following selective pertinent articles of the time which illegal activities are unaffected and still widespread now such just as they were back in 2004 and 2005):

• Investigation of Insurance Puts Buffett in a Spotlight,
• Warren Buffett under fraud suspicion,
• The art of deception,
• NICO Reinsurance, UNUM Insurance Book Reinsurance Differently ... Leave Accounting Experts Dumbfounded-Questioning,
• U.S. insurance body in hunt for (fraudulent finite reinsurance) evidence ... FBIC says with this, its expose' here, authorities need not to look further.

Insurance companies illegal activities destroy companies, jobs and kill people. There are many more cases supporting Berkshire Hathaway Insurance Companies Group primarily reinsurance related bad faith insurance practices and other related activities of fraud that will follow along with supporting court testimonies, to name a few to include with Whistleblower comments as may be indicated ... just the tip of the iceberg:

• Santa Fe Braun Inc., f/k/a C.F. Braun & Co. Versus Insurance Company of North America, Etal. CG-04-428686 (CA, San Francisco Superior Court) (Click on the following to read The "Third Amended Complaint" abbreviated here down to 21 pages to spare you reading time from the total 208 number of pages comprised in the whole document ... you can read just the sections "Facts Pertinent to the Liability of the Berkshire Companies" (paragraphs 93-107) and the 4th – 8th Causes of Action (paragraphs 125-143) court document details and best confirms some of the alleged fraudulent activities involved.  
• ITT Industries, Inc. and ITT Gilfillan, Inc., currently a division of ITT Industries, Inc. versus Fireman's Fund Insurance Company Etal BC322546 CA, Los Angeles (WB Comment: We have yet to see the final amended complaint, but we are reliably informed that it contains the same allegations as C.F. Braun. Randall & Quilter and various repeat and related other entities are defendants in several lawsuits alleging business practices intended to defraud policyholders). "ITT vs. Fireman's Fund Etals First Amended Complaint".
• J. T. Thorpe versus Texas Property and Casualty, (TX, Austin, Travis County) and J. T. Thorpe versus Federal Insurance Company 9814361 (CA, Los Angeles) (WB Comment: Again, Mr. Ryan is delaying and avoiding payment as it does not fit his payment schedule). J T Thorpe v. Federal Insurance Company; JT Thorpe v. Texas Property & Casualty.
• I. C. Industries: Certain Underwriters at Lloyds of London Etal versus Pneumo Abex Corporation Etal 02CV8053A (NY), 6024932002 (NY) (two cases: - WB Comment: The 1999 settlement agreement stipulated a payment in 2002 for $9.5M. Mr. Ryan feels that he should only have to pay $8.5M, and has withheld payment). Certain Underwriters at Lloyd's London v. Pneumo Abex Corp, Etal Complaint Notice Of Removal To Federal Court 02CV8053A; Lloyds London v. Pneumo Abex Corp., Etal. 6024932002 Complaint.
• Fuller Austin Insulation Company versus Fireman's Fund Insurance Company BC116835 (CA, Los Angeles) (WB Comment: Could have been settled with a structured payment scheme totaling $18M over 3 years. Mr. Ryan would not pay this as it exceeded his cash flow projections and went to trial, resulting in a verdict of $55M. Currently dragging out the appeal process to avoid payment. Fuller Austin vs. Fireman's Fund Etal Seventh Amended Complaint court document details and also best confirms some of the alleged fraudulent activities involved.
• Fuller-Austin Insulation Company v. Highlands Insurance Company Etal.  B170079 (CA Appellate Ct, 2nd Dist.). (FBIC: reference Fuller Austin vs. Fireman's Fund above: Fuller Austin vs. Fireman's Fund Etal Seventh Amended Complaint).
• Cadwalader, Wickersham & Taft LLP Versus OneBeacon America Insurance Company, Seaton Insurance Company, And Cavell USA Inc 05CV4244 (NY, US Southern Dist.) Breach of contract, etc. Non-payment of insured-reinsured legal defense coverage. Complaint - CWT v OneBeacon-Seaton-Cavell (04-28-2008), Docket - CWT v OneBeacon-Seaton-Cavell (04-28-2005);
• State of California versus Underwriters At Lloyd's 239784 (CA, Riverside) and State of California versus Allstate RIC381555 (CA, Riverside) (two cases, WB Comment: Mr. Ryan has created an artificially low number to settle. By sticking with this amount he is delaying timely settlement of funds owed.) State of California versus Allstate, Etals., State of California versus Underwriters At Lloyd's, Etals..
• Continental Casualty Etal v. Borg Warner 04CH01708 (IL-Circuit Court Cook Cty) (WB Comment: The complaint sets the total claim value at $50M, but Ms. Hoelsken has only set up a reserve of $5M because of the effect that a full reserve would have on the financials. If the reserves were set at prudent levels there would be no justification for a dividend to shareholders. As an example, in the case of Borg Warner the total claim value is $50 million. Ms. Hoelsken will not post that number in reserve, and has instead posted $5 million. She has stated that she would rather "stairstep" the reserve in order to keep the financial position where it was planned. This allows the shareholders of these three companies to take dividends, as they are reported as having a surplus of $15 million. This effectively defrauds the policy holders of the funds necessary to pay the claims and will cause the companies to go insolvent sooner than necessary. That is the principal reason they have redomesticated these companies to Rhode Island, as they can take advantage of the State's schemes of insolvency to then walk away from any remaining liability. Another example of this reserving practice is the Occidental Petroleum case. Continental Casualty Etal v. Borg Warner Complaint
• Celanese Intl v One Beacon America Etal. f/k/a Commercial Union    Insurance Etal. SUCV2006-1625-BLS (Boston, Suffolk County, MA) (WB Comment: There is a coverage-in-place agreement stating that payments would be made upon submission of bills. However, bills are submitted but not paid, and over $5M has been held for over 1 year. A DJ action in respect of the breach is currently in the works.) (FBIC: 2009 trial testimonies by Berkshire Hathaway's Tom Ryan, V.P., Berkshire Hathaway Staff Members: Robert Burns and Christy Bresson referenced and included above herein). Celanese v One Beacon Original Complaint; Celanese v One Beacon First Amended Complaint; Celanese v One Beacon Second Amended Complaint.
  
  Read trial testimonies of:
  Tom Ryan, Grp. V.P. (01-13-2009), (01-14-2009); Robert Burns, Staff Member  (01-21-2009); Christy Bresson, Staff Member (01-16-2009), (01-20-2009).
  
  Read more evidence:
  Robert Burns Memo (Memo Note: "ALE" = "Allocated Loss Adjustment Expense" ... to our knowledge such lawyer and related expense are separate from standard claims related expenses involved in and paid as part of reinsurance claims related expenses, and along with consulting fees could potentially be one of many illegal ways of siphoning moneys off from treasuries let alone a way to not pay claims.)

• What Will Be The Effects On The Insurance Industry?
• What Insurance Companies Are Negatively Exposed And Most Likely To Fail?
• What Insurance Companies Are Illegally Denying Claims And Increasingly
  Advancing Bad Faith Insurance Practices Agendas In Order To Illegally Save
  And Preserve Capital In Hopes Of Preventing Or Putting Off Their Company's
  Ensuing Failure And/or Insolvency (In Hopes Of Saving Their Own Jobs And
  Incomes)?