Federal Judge Allows Insurer To Advance Defense Costs In Suit Brought By SEC

ST. LOUIS - Proceeds of a Venture Capital Asset Protection Policy are not part of a receivership estate, and the insurer is not barred from disbursing insurance proceeds to pay defense costs in a lawsuit in which the Securities and Exchange Commission alleged misappropriation of $9 million in investments, a Missouri federal judge ruled May 8 (Securities and Exchange Commission v. Burton Douglas Morriss, et al., No. 4:12-CV-80 (CEJ), E.D. Mo.; 2012 U.S. Dist. LEXIS 64465).

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