Reinsurer Says Claims in $4.5M Fraudulent Wire Transfer Lawsuit Not Preempted

ORLANDO, Fla. — Barents Reinsurance S.A. told a Florida federal judge that its lawsuit accusing a bank of negligently allowing $4.5 million in reinsurance proceeds to be fraudulently transferred to a scammer should proceed, arguing that Section 670.207 of the Uniform Commercial Code (UCC) contains no privity requirement.

In a Jan. 8 opposition filed before Judge Anne Conway of the U.S. District Court for the Middle District of Florida, Barents further contends that the UCC does not preempt its negligence and unjust enrichment claims against Truist Bank because they involve post-transfer activity.

Barents Reinsurance S.A. was required to pay a …