DECD v. Hybrid

by Categorized: Adam Cloud, Earl O'Garro Jr., Hybrid Insurance Group Date:

The  state department of economic and community development’s lawsuit has surfaced. The department is seeking repayment for loans given to Earl O’Garro Jr., the embattled CEO of Hybrid Insurance Group.

The Courant previously reported that O’Garro was granted state loans for $100,000 and $500,000 (though he only received half of the latter loan), and a $26,000 matching grant. O’Garro has defaulted on those loans, and the state Attorney General’s Office has said it obtained a court order to seize O’Garro’s assets.

The DECD lawsuit says O’Garro stopped making payments on the loans. It also says: “There is a reasonable likelihood, given the conduct of Defendant O’Garro in the alleged operation of his insurance business … that he will remove … property from this state, and is likely to fraudulently dispose or hide his money, property and assets with the intent to hinder, delay or defraud his creditors.”

The agency is seeking $300,000 and has asked the court to “attach any and all bank accounts belonging to Defendants Hybrid Insurance Agency, Hybrid Insurance Group or Earl O’Garro Jr.,” including accounts through Webster Bank and Bank of America, and “to attach and allow the state marshal to take physical possession of” a 2003 Range Rover and a 2009 Mercedes S 550.

O’Garro also has been sued by AmTrust E&S Insurance Services. The lawsuit charges that Hybrid received at least $300,000 for premiums on several policies, but failed to send the money to insurance carriers.

AmTrust is seeking $300,000 and has asked the court to garnish O’Garro’s bank accounts, real estate and personal property.

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