Markel is seeking to void a $2m malpractice insurance policy it issued to an indicted wills and trusts lawyer, and not pay out hundreds of claims – U.S. Bankruptcy Court documents show.

Lawyers for Markel alleged that Robert Graham lied when he filled out an application for the policy on December 2015 saying he knew of no professional liability claims against him, a report from the Las Vegas Review-Journal said.

According to Markel, roughly 390 parties have put in malpractice claims. It wants permission from a bankruptcy judge to pursue legal action against Graham in state court to nullify the insurance policy, the report added. A hearing on the Markel’s request is set for March 14 in bankruptcy court.

Want the latest insurance industry news first? Sign up for our completely free newsletter service now.

Graham “abruptly shut down his Las Vegas practice December 2, leaving his employees without jobs and abandoning more than a hundred client files,” the State Bar of Nevada said. He is accused of stealing $2.1m from three victims, according to the Clark County District Attorney’s office.

Graham was indicted last month by a grand jury on charges including theft, exploitation of an older/vulnerable person and destroying evidence.  The charges could get him jailed for approximately 90 years, according to figures from Clark County District Attorney’s office.

“The criminal indictment against Mr. Graham and other publicly available information indicate that Mr. Graham began misappropriating client funds long before Dec. 10, 2015, when Mr, Graham signed and submitted his application for the Jan. 1, 2016, MIC Lawyers Professional Liability Insurance Policy,” the lawyers wrote.


Related Stories:
Ex-CEO of giant insurer admits to “fraudulent” deals
Georgia police arrest former insurance agent over fraud charges