It seems problems keep cropping up for Earl O’Garro Jr., the businessman who is at the center of a federal grand jury investigation.
An attorney representing the plaintiffs in a civil case against O’Garro has filed a motion for contempt, saying O’Garro failed to disclose his assets. Superior Court Judge Carl Schuman had ordered O’Garro to disclose his assets by Jan. 8.
O’Garro is being sued by AmTrust E&S Insurance Services. The lawsuit charges that O’Garro’s company, Hybrid Insurance Group, received at least $300,000 for premiums on several policies, but failed to send the money to insurance carriers. The suit also says that O’Garro “made false statements and sent forged e-mails purportedly” from AmTrust employees.
AmTrust is seeking $300,000 and has asked the court to garnish all of the defendants’ bank accounts, real estate and personal property.
Earlier this week, Andrew O’Toole, who is representing AmTrust, filed a motion for contempt against O’Garro. O’Toole asked the judge to:
* Award the plaintiffs the “appropriate damages and expenses, including their attorney’s fees, that result from Mr. O’Garro’s and Hybrid Insurance’s contempt and failure to comply with the court orders.”
* Require that O’Garro “disclose under oath, in writing or at deposition, any and all assets belonging to [him], Hybrid Insurance, Blaque Rock Capital and/or Marlbro’s Restaurant Group within five business days of the court order.”
* Warn O’Garro and Hybrid that if they do not comply with the court order requiring them to disclose assets within five days. “the court shall impose … monetary sanctions against [both] at the rate of $100 per day.”
* Caution that if O’Garro and Hybrid don’t comply with the orders, “the court may consider whether any other additional relief may be appropriate.”
Schuman has not yet ruled on the motion.
You can view the motion, and the court order to disclose assets, here: motion for contempt. The document includes a chain of e-mails in which O’Garro acknowledges he received a form to disclose his assets. Later e-mails between O’Toole and Kevin Roche, a lawyer for O’Garro, indicate that Roche could not get in touch with O’Garro.
Hybrid, which O’Garro formed in 2010, is being investigated for allegedly failing to pay $670,000 in premiums to two of the city’s insurance carriers. O’Garro received notice in October that he is a target of a federal grand jury investigation, sources have said.