Disgraced cyclist in massive fraud payout

Disgraced cyclist in massive fraud payout | Insurance Business

Disgraced cyclist in massive fraud payout
Lance Armstrong has been ordered to pay SCA Promotions, a sports insurance company, $12.9 million in a fraud claim following the cyclists doping admission.

Armstrong, who had his seven Tour de France titles stripped when he admitted to a prolonged doping campaign last year, had been paid the money in bonuses following his title winning rides.

An arbitration panel in Texas ruled against Armstrong and he has been ordered to pay back the bonuses but has reportedly refused to do so, according to USA Today.

SCA Promotions believe the $12.9 million award to be the largest award of sanctions assessed against an individual, and comes following Armstrong’s vehement denial of doping that came to an end two years ago.

Tim Herman, Armstrong’s attorney, said in a statement that Armstrong plans on fighting the fraud payout.

“This award is unprecedented," Herman said.

"No court or arbitrator has ever reopened a matter which was fully and finally settled voluntarily. In this matter SCA repeatedly affirmed that it never relied upon anything Armstrong said or did in deciding to settle (in 2006)."

However, SCA's president and founder, Bob Hamman said: "We are very pleased with this result."

"It is hard to describe how much harm Lance Armstrong's web of lies caused SCA but this is a good first start towards repairing that damage."