Hantz Financial Services, Inc. v. American International Specialty Lines Insurance Co.

COOK, Circuit Judge.

In an embezzlement scheme spanning eight years, Michael Laursen, an employee of securities broker-dealer Hantz Financial Services, misappropriated over $2.6 million in client funds. Hantz Financial Services reimbursed the stolen funds to the affected clients and sought indemnification under two insurance policies: a fidelity bond from National Union Fire Insurance Company of Pittsburgh, PA (“National Union”) and an errors-and-omissions policy from American International Specialty Lines Insurance Company (“AISLIC”). 1 After both insurers denied coverage, Hantz Financial…