In the News: AmTrust

Secret Recordings Play Role in SEC Probe of Insurer AmTrust

The auditor at BDO USA LLP casually wandered around the accounting firm’s New York offices, striking up conversations with colleagues about BDO’s audit of the large insurer AmTrust Financial Services Inc. 

Unknown to the colleagues, the auditor was carrying a tiny recording device disguised as an ordinary Starbucks gift card, capturing every word for the Federal Bureau of Investigation.

AmTrust Shares Drop After Admission of Errors 

Shares of AmTrust Financial Services Inc. fell to a 52-week low Friday after the company said it would restate its last three years’ worth of earnings and further delay filing its annual report.

The New York property and casualty insurance firm said Thursday there were errors in the timing of when it had recorded some revenue and bonuses. The firm first said there were “immaterial” errors last month, saying it would need more time to file its 10-K annual report with the Securities and Exchange Commission.

Founding Family of AmTrust Financial Invests Additional $300 Million in Insurer

The founding family of AmTrust Financial Services Inc. is investing an additional $300 million into the insurer following a steep dive in its shares tied to investor concerns.

The infusion of money from the Karfunkel family should “provide confidence to all of our stakeholders that we are well capitalized to grow and write business,” the company said.

Insurer AmTrust Reaches Civil Settlement With SEC

WASHINGTON—AmTrust Financial Services Inc. and its former chief financial officer agreed Tuesday to pay $10.5 million to settle allegations they failed to fully disclose how they estimated losses from insurance claims.