Parties Reach Settlement in $9.3 Million Reinsurance Action Involving Safebuilt Program

NEW YORK — A New York federal judge has dismissed with prejudice a $9.3 million reinsurance fraud action involving the Safebuilt Reinsurance Program, noting the parties have reached a settlement.

Judge Colleen McMahon of the U.S. District Court for the Southern District of New York entered the stipulation and order on Aug. 17, which was signed by the parties’ attorneys.

Under the “Safebuilt Reinsurance Program,” Safebuilt, an entity controlled by David Pike and Philip Salvagio, was to underwrite primary policies issued by United Specialty Insurance Co. Those policies were then to be reinsured by AmTrust North America Inc. and Technology …