Ex-Root CMO ordered detained over contempt of court
Ex-Root CMO ordered detained over contempt of court | Insurance Business America
Insurance News
Ex-Root CMO ordered detained over contempt of court
Former insurtech marketing chief is accused of multi-million fraud
Insurance News
By
Jen Frost
The former chief marketing officer (CMO) of Root, Brinson Caleb Silver, has been ordered detained over contempt of court.
Silver and other defendants in the case brought by Root, which alleged that the CMO conspired with others to funnel off at least $9.9 million in a “brazen and sophisticated scheme” to defraud the insurtech, were told in May to share a list of assets and documents with the authorization of a receiver appointment, according to a June 20 US District Court order.
However, in the June 20 update, the court said it “is convinced” that the defendants had not turned over all books and records, sums, and other information to the receiver as instructed.
“Accordingly, the Silver defendants are in contempt of court,” the order, from United States District Judge Sarah Morrison, said. “Mr. Silver is ordered detained until he produces information and documentation to the satisfaction of the receiver.”
The Silver defendants had argued they should not be held in contempt, according to the order, because they had provided a list of assets. While the court was satisfied that such a list had been provided, the receiver testified of “repeated failures” on compliance, with the receiver’s “independent discovery” of a California property given as an example.
Silver, who was not immediately available for comment, has denied Root’s allegations, as have other named Silver defendants Collateral Damage and Eclipse Home Design. The insurer’s allegations have not been proven in court.
Counsel for Silver has indicated he may exercise his Fifth Amendment privilege, it was noted in a court order footnote. If properly asserted, this may lead to a purging of his contempt without providing “substantive answer” to each request, it was stated.
Silver served as Root’s CMO from November 2021 to November 2022.
Root has been approached for comment.
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