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Arrest warrants have been issued for two New York financiers after prosecutors filed charges in Oklahoma state court relating to the purchase and handling of a now-defunct Oklahoma insurance company that the pair once controlled.
Scott Hartman and Andrew Scherr face 28 counts of felony charges that include using counterfeit bonds in order to take control of the bankrupt insurer, forgery, filing false documents with the state insurance department, using the insurance company's assets to enrich themselves, and more.
In 2013, when Hartman and Scherr took control of Oklahoma City-based BancInsure, which was re-named Red Rock Insurance, regulatory approval was based on the representation that they would invest some $30 million in capital into the company. To facilitate the transaction, they used their financial services holding company, Foster Jennings Inc., which paid $1 for BancInsure.
BancInsure had specialized in insuring community banks. It suffered big losses during the economic downturn that began in...