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OUTLINE OF CHARGES AND SEIZURES UNITED STATES V. TONY HABIB

 NEW YORK, April 5 /PRNewswire/ -- Tony Habib, the head of Financial Services Insurance, Ltd. (FSIL) and International Investments Financial Services, Ltd. (IIFS), was arrested last Thursday (April 1) on a complaint charging him with using those companies to operate a multi- million dollar insurance fraud. In a related proceeding, the government obtained orders entitling it to seize all assets of FSIL and IIFS, along with a number of Habib's own bank accounts.
 According to Roger S. Hayes, United States Attorney for the Southern District of New York, the complaint charges Habib with fraudulently misrepresenting that FSIL held substantial assets to obtain official authorization for FSIL to operate as an insurance underwriter and carrier. Habib successfully obtained such authorization for FSIL in at least California and Illinois, and underwrote insurance against more than $7 million in insurance premiums, representing hundreds of millions of dollars in potential insurance liability.
 According to David Raymond Lewis, the assistant United States Attorney in charge of the criminal case, the complaint charges that the gist of Habib's scheme involved Habib's successfully convincing state insurance regulators that FSIL held a portfolio of U.S. Treasury notes and bonds worth over $50 million. This phony portfolio was used to satisfy state regulators that FSIL had sufficient assets to satisfy state minimum-capitalization requirements, and to safely stand behind any insurance that it sold. In fact, according to the complaint, FSIL held no such notes or bonds. The complaint charges that FSIL currently holds net assets of roughly $1 million, and is likely to face future insurance claims of several times that amount.
 Sharon Cohen Levin, the assistant United States Attorney in charge of the forfeiture proccounts have been used in illegal money laundering.
 The charges in the criminal complaint are accusations and Habib is presumed innocent until proven guilty. The allegations in the forfeiture action similarly may be contested by the parties.
 Mr. Lewis noted that, if convicted, Habib faces a maximum sentence of imprisonment of five years in prison, as well as a fine of up to twice the amount of his profits through the fraud. Habib is scheduled to be presented today before United States Magistrate Judge Naomi Reice Buchwald.
 Habib, age 36, resides at 666 Greenwich Street in Manhattan.
 Mr. Hayes praised the efforts of the United States Postal Inspection Service in its ongoing investigation of this case.
 -0- 4/5/93
 /NOTE TO EDITORS: A complete copy of the complaint is available upon request.
 /CONTACT: Kate Cosenza, 212-791-1937, or David Raymond Lewis, 212-791-1156, or Sharon Cohen Levin, 212-791-1959, all of the U.S. Attorney's Office/


CO: U.S. Postal Service ST: New York IN: SU:

LR-SB -- NY035 -- 3056 04/05/93 13:01 EDT
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Publication:PR Newswire
Date:Apr 5, 1993
Words:449
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