King Sues Insurance Company For $15 Million Con
Chatshow host LARRY KING has filed a lawsuit against his former insurance brokers, accusing them of conning him out of $15 million (GBP7.5 million) in personal life insurance policies. King, who filed the lawsuit in Los Angeles' U.S. District Court on 22 October (07), claims he was swindled out of the cash in an elaborate scheme by the Meltzer Group in 2004. He has also named the head of the company, Alan Meltzer, in the suit, after being convinced to engage in a series of "highly complex life insurance transactions" which resulted in the buying and selling of policies worth a total value of $15 million. In one instance, King purchased a $10 million (GBP5 million) policy, which he was instructed to sell immediately for $550,000 (GBP225,000) profit. The 73-year-old also claims he was told to sell a $5 million (GBP2.5 million) policy for just $850,000 (GBP425,000). In the legal papers, King accused Meltzer of being driven by "greed" to steer him into deals which were against his financial interests, without considering the "likelihood of his future uninsurablility". He also claims the deals were organised to benefit Meltzer financially through commissions and bonuses. King - who has not specified monetary damages - is suing Meltzer and his company for breach of fiduciary duty, reports website TheSmokingGun.com.